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I doubt it would be very good insulation. Snow is a decent insulator, but ice doesn't have the air pockets snow has.
That can't be good for the houses. Imagine when all that ice melts. Water will work its way in through every little crack in the sidings and shingles. Water stains are a minimum, and rot is a possibility if a lot of water gets into the walls.
It sure does look cool though. I wonder if that's a deck or a dock she is standing on? It looks like it could be a water-front home, and boats pull up to that gap in the railing.
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