There's quite a bit of difference between representatives of your government doing something for the ostensible intention of making areas safer, and a corporation doing something similar with the intention of making a profit.
At least for companies you know their motives: profit. This makes them predictable in ways that political motives never will be. Once this kind of surveillance capacity is in place, there is no going back, even if the politicians (and the motives driving them) can and will change for the worse.
Why is it so hard for these news sources to add a link to the Google Street View location in question? Neither cnet nor The Sun has the link. Is it some link-juice thing?
Funny that the people would get up in arms over this but yet be pliant to the CCTVs that are so common over there.