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Frank Taylor, from the unofficial Google Earth Blog, compares "look around" with Microsoft PhotoSynth, an interesting technology that reconstructs three-dimensional spaces from large collections of photos. Panoramio's feature is less impressive and can't recreate 3D spaces that let you seamlessly move between different perspectives, but I wouldn't be surprised if Google integrates it with Street View and Google Earth.
The list of places you can explore using the new feature includes: the top of Empire State in New York, the last floor of Eiffel Tower, the Red Square of Moscow, Brandenburg gate in Berlin and Taj Mahal. Just click on "look around" below the photo and move your mouse inside the new image to choose the next perspective.
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