As I understood it, the way they formulated the ruling says that it only becomes a problem when it reaches "commercial proportion", or "commercial value". According to the ruling it would be illegal for Facebook to do a similar database, the difference here being that Facebook is not creating such a database, and afaik no single Facebook user has attempted it either.

However I'm interested in what the case is with Google Ingress and their effort to make public art etc. more accessible through a smartphone-game using GPS and images.

Furthermore, yes, this is all madness.