Virtual Earth For Government: Virtual Earth for Geospatial Intelligence:
This page has an extremely interesting video of the use of 3D GIS and Web2.0 for security purposes. The video takes one through a scenario where a dirty bomb has moved into a major US city, and how 3D GIS can be used to track such a shipment and provide key players and responders with information in 3D.
With tools like LIDAR Analyst and URBAN Analyst that we are working on - such applications are not far off.
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