MacRumors reports that Google Street View has been enabled in the latest build of iPhone 2.2 Firmware (Beta 2).

While previous versions of iPhone Firmware 2.2 (Beta 1) hinted at Google Street View support, it had not been enabled.
Adversely, the first official phone running Android, T-Mobile’s G1 with Google, has support for full Google Street View as well. This functionality being added to the iPhone is not a surprise, seeing as how the native mapping application on the iPhone is powered by Google’s mapping back-end.

Apple has begun seeding iPhone 2.2 Firmware Beta 2 to developers tonight.
Update: A gallery can be found here. Thanx to iPhoneYap.