Good note on the Datum used. Make sure that matches any map or device you reference using Google Earth coordinates. The shift can be a few feet or a few hundred miles away if you are not careful.
There are a number topics to cover here and I will try to clarify a few things.
Resolution
is a measure how small a reading is subdivided. If a digital reading has 5 digits, then it has a resolution of one part in 100,000 (00000 to 99999). A reading that has a resolution of 5 digits does not mean that it is precise or accurate to that value. In fact, all it means is that the display you are reading has 5 decimal numbers showing, nothing else. Precision can never be better than resolution but it is usually a lot worse.
If you set Google Earth to Decimal Degrees it will give you 6 decimal places for a resolution of .36 feet at 50 degrees latitude north which is being conservative.
Precision
is the measure of the repeatability of your reading. If you take 100 readings of the same measurement, there will be a variation in the readings. The smaller the variation or range of readings, the better the precision. Accuracy is not related to precision except that precision will put an upper limit on accuracy.
This is an unknown factor with Google Earth but is likely close to basic industry standards at about 2 centimeters.
Accuracy
is the variation between the measured readings and the true value of the measurement. For example, I can place a location pin on a map and measure the Lat/Long coordinates 10 times. The readings could be within a thousandth of a degree. But the accuracy of the reading will be dependant on the interpretation of where the pin should be placed, the accuracy of the reference point to which the reading is compared and the accuracy of the measuring device. I may place the pin in a spot and be able to take readings that are precise to 10 metres but maybe I placed the pin 1km from the true location of the feature or maybe the measuring device is not calibrated and is 10% in error. The accuracy in that case would only be at best +/-1km. Accuracy can be no better than precision but it can often be a lot worse. Human and interface factors also play a large role in accuracy interpretation. Unless you understand the underlying errors in the measurements, your reading can often be misleading.
There is variability in the horizontal control of Image data in all map viewers including Google earth. This variability is also a moving target as you pan your way across the map using different source data and image sets. How accurately geo-referenced was the image set you are viewing as you move the cursor to that point of interest and read the coordinates displayed? A highly accurate local image set for government use will have a horizontal accuracy of about 6 to 18 inches but for regional sets you could expect as much as 15-30ft of error to start with. couple that with errors in interpretation and interaction you could easily see movements in the 50ft range. It depends greatly on the source.
As for address searches and matching, there are many factors at play. Addresses are located using a process called geocoding. This is an address matching method using roadway addressing directions and ranges that are highly variable in currency and accuracy. When you search for an address, it uses each portion of the address piece by piece to narrow the result until it lands on your street. Once on the street, it interprets the range on that street and divides the road segment into equal segments to give each number in the range an equal length. If the range is perfectly accurate from start to finish and all properties have the same amount of street frontage, the match will look perfect and place a dot right in front of your property. In real life, ranges have an element of "fluff" at the ends to allow matching for emergency services with less demand for constant maintenance. They would rather get to the right street that not have any match at all. That is why you normally have a match to the right street but the dot placement on that street may fall down at one end or another. In a county of about 750,000 it takes about 3 full time staff to simply maintain addressing for reasonably accurate match results.
The data used in free online search tools is the cheapest, oldest, and least precise available. When you buy a new GPS unit that includes mapping from a company like Garmin, you are paying also for an upgrade to a more current set of road addressing data that has been more carefully collected/assembled and updated for better results. There is a slowly growing trend to move away from road centerline addressing to a point-on-building approach but it will take years to see the benefits on a wide scale.
Google Earth is a great tool and fun to use as well. The coordinates pulled from it could be used for reference to find a neat spot with your GPS but of course are no substitue for proper charts. I would say it's largest strength is providing perspective for planning and trip review purposes.
Greg