This article explains how certain street images have been pulled from Google because they respond to people asking for pictures to be removed. A solution mentioned is that they could take multiple sets of pictures on the day that they are taking them to ensure that they don't choose the offensive ones.
This is about how many users were surprised by the details of google street view (ex. image of cat). They believe this means they have to close blinds. Some license plate numbers were readable and illegal areas were photographed.
Yes the school has the right to monitor students' use of the network because they are paying for the service and if everyone kept downloading a lot of stuff then the network would be slow for everyone.