Satellites in space to not use optical lenses like the jackass was pushing, they use charge coupled devices at incredible resolutions. They're keyhole satellites. They're mirrored to other satellites that are super image processing satellites, in a nut shell.

Any idiot can use Google Earth and view things on the ground from space.

General civilian populace is only allowed to view to a certain extent ( in layman's terms ) where as, higher security, Top Secret for most classes, can zoom right in your windows with resolution you don't even want to know about. Believe it. It's happening all over, right now.

No, they do not watch every single person at once, but they do watch whoever they want. Composite audio signals and be transferred through certain types of IR emitters, similar to lasers in many ways. In short, they can listen to you from space, from anywhere else in the world. Not 100% effective and it certainly doesn't eliminate the need for ground surveillance or other means of "intelligence gathering" but you'd be astonished to know exactly what they can do. If you think you're safe inside the house, in the shower with your lights off… you're a fool. As Q has stated in the past…. "We can hear you breathe." and that should be taken literally.