So the basis of complaint is that the geocoder is not accurate.  Yes,
that is true ; see the small print in the Streetview at
 
http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=120+North+Illinois+St,+South+Bend,+IN&sll=41.675925,-86.300955&sspn=0.011556,0.016694&ie=UTF8&ll=41.675925,-86.300933&spn=0.011556,0.016694&z=16&iwloc=A
"Address is approximate"

See also the documentation
  http://code.google.com/apis/maps/documentation/services.html#PanoramaObject
"the Street View service does not require (and generally does not
receive) exact latitudes and longitudes in these cases, but rather
searches for the existence of panorama data "near" a given GLatLng."
'near' is not the same as 'nearest', have you tried using
getNearestPanorama() it may just come up different?

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