There isn't a time lag as such. They take the photos and they blur the images of individuals before the images are posted on the Internet. So before it goes live, faces are blurred. Licence plates are blurred. Actually, I'm not sure what you mean by a time lag.
Google has not blurred schools. They've talked to umbrella organizations to ask if they wanted images removed. But if you go on Google Street View and you search for a local Ottawa school, I think you will see the building there. You may see children walking by that are captured at a moment in time. Their faces should be blurred, but the blurring is not 100% effective and we've found many instances in which individual's faces are not blurred. Moreover, there are false positives. The face of Colonel Sanders, of Kentucky Fried Chicken, is blurred out in signage and faces on billboards are blurred out. It is not a perfect technology.