Well, to-date the news only is that the 3D Warehouse route to populate GE with 3D models on the public 3D Layer will be closed. There has not been any info about the software (either SU or GE) being crippled and geolocation or displaying models removed.

You can even keep uploading models to the 3D Warehouse, even make them not public and share only with clients who can download the models and watch them on GE.

That is; for the time being. I am not sure what will come in the future and I guess no-one can predict.

I am really sorry that i hve not replied to this earlyer. I was sertain that i had email notification turned on, and thought noone had answered.

I will try your tips, and thank you for your time!

Well, here is the guide line for the individual buildings:
http://support.google.com/sketchup/bin/answer.py?hl=en&answer=1267399

Then you can also add a (small) "terrain skirt" (which I would use for that central area if it is only raised and not a building like a garage):
http://support.google.com/sketchup/bin/answer.py?hl=en&answer=167465
But make sure that small is small. Like it should not extend out of the yard in your case, I guess. Here is the guide line:
http://support.google.com/sketchup/bin/answer.py?hl=en&answer=1267403

And all the guide lines:
http://support.google.com/sketchup/bin/answer.py?hl=en&answer=1267260

Well, I understand that often it's practically impossible to take a good picture. Eventually you could however get just one side of your structure, export an image in an orthographic (parallel" view of it and make a good transparent png using that image. Then simply project the image onto a single surface.