Google is the de-facto source of all knowledge. If Google says it, it is henceforth treated as truth.
When it comes to maps, and Google’s global reach, the same holds true. That is why when Nicaragua almost went to war with Costa Rica, it blamed Google Maps for its wrongdoing. And why Cambodia threatened to sue Google over what it claimed was a misleading map giving control of a temple to Thailand – a culmination of a conflict that saw many on both sides killed. Google also shows different spellings and different borders, depending on where in the world from where you access their services.
Sometimes, things fail even for Google.
Mishmar HaYarden is not, as Google Earth shows, in Palestine.
The error also existed in Google maps until a few hours ago. I reported it earlier today, and they have appeared to have corrected it by now in their Maps service. As of publication of this post, the Google Earth error remains, but updates there usually take longer and come in batches.
But hey, at least it’s not as bad as Bing.