Trondheim 3D demo in HD from Morten Jacobsen on Vimeo.
Ludvig Emgard of C3 Technologies presented a talk at this years Where 2.0 entitled "World's Most Realistic 3D City Models?". The movie below is well worth a look as it talks though the technology behind the modelling process:
The process is automated, with the textures and mesh produced purely from imagery and not from the more traditional LiDAR approach.
See http://kart.sesam.no/3d/ for a 3D flythough (Windows only at the moment) and http://www.c3technologies.com for more info.