Yes, indeed http://www.youtube.com/watch?v=N6Douyfa7l8

This is new development though and only on the Google Earth product for mobile, not in the maps app. Maps app for Android has those blocky untextured 3d buildings in select areas.

Google has had 3D buildings for years. That video is only the latest in a long series of improvements on this feature. The level of detail in that video far exceeds what others are doing, but it's still rolling out throughout this year.

They actually have textures if you enable satellite imaging. They just also do the Mirror's Edge rendering of the city.

It's interesting how Google does it. They both contract and scan data in, but they also let you use SketchUp to submit data as well.