I think you didn't even read the report. It explicitly states that there was intent to use the data. It was the whole point of the project according to the design document that management apparently approved without reading.
The seven engineers weren't just people he circulated memos to. They worked on the project--five tested it, another reviewed the code, and another helped in some unspecified way.
Let's be realistic here. It's extremely difficult to believe that seven engineers could work on a Street View project, managers could approve the proposal, yet not a single other soul in the company knew what was going on or intended to do anything with the data for the two years that the project ran.