Does ArcGIS Desktop or any of its native extensions allow me to create DEMs from stereo pairs (acquired by satellite, GeoEye 1)?
If the answer is a clear no, brownie points will go to an answer that proposes a viable alternative using OpenSource.
if you are searching Automatic DEM extraction module, you should check out PCI Geomatics (there is video here) or ENVI DEM Extraction Module (which i have used before from stereo - and a little bit hard to remember...)
and if you want free but not open source (FbNOS) project, you can check out HyperCube here. it has lots of functions for image and data. you can find more information form docs which have published on their site.
HyperCube includes the static and dynamic display of the image cube and the generation of spectral classiﬁcations using both imagery and spectral libraries. In addition, HyperCube contains functions to ﬁlter, warp, mosaic, reformat, calibrate, combine, photogrammetrically project and to perform arithmetic on imagery and data.
i hope it helps you...
Ames Stereo Pipeline (ASP) is an open source toolchain that can make 3D models from NASA satellites and commercial satellites like GeoEye 1, World View 1 & 2, and Pleiades 1A & 1B.
Page 62 of the PDF documentation outlines how to use it for GeoEye imagery.
You can also try the stereo reconstruction framework available in the open source software ORFEO Toolbox. It uses satellite model to build epipolar geometry and include block matching algorithms for DEM reconstruction.
There is a "one click" application called StereoFramework: