It's not blacked out, you are just seeing a very low resolution area with an aerial/satellite image on the south part of it.
Most areas blurred or blacked-out in GE are for security reasons. But here's a stumper: I discovered a blacked-out area in the Coral Sea between the Chesterman Islands atoll group and New Caledonia. Coordinates are approximately
19░ 6'3.32"S, 159░56'34.81"E
What's even more curious is the citation I found on Answers.com that says the place "doesn't exist" :
An Australian yacht racer I dredged up told me that the Chesterfield area is in dispute between France and Australia, but I have no other information. The nautical chart is hard to come by ($$$). Anyone have any ideas as to what's being hidden here?
While the Guardian newspaper is famous for typographical errors they are also famous for getting most of their stories correct. So, no Sandy Island! The real joke is that Google Earth shows an island outline and that there are copious photographs of other places dotted all over it! This is probably one of Google's best cock-ups of all time!
is the guardian famous for typos?
perceive nothing but the black text only