Yes, it's quite common. It literally means "a long way ahead". "Switzerland is streets ahead of Italy in healthcare." "The iPhone 6 is streets ahead of the Samsung Galaxy 3." Be careful if you use it with individuals, it could come across as rude: "Tommy is streets ahead of Billy in French class." You will also often hear the exaggerated version: "iTalki is light years ahead of DuoLingo." (My apologies to Italy, Samsung, Billy and DuoLingo ;) )

Martin has given you some excellent examples. Just one thing to add - this isn't an idiom used much in conversational contexts, which is why Georgia says she doesn't hear her friends say it. In casual conversation, you'd be more likely to hear something like 'Tommy's miles better than Billy' (with apologies again to Billy). However, it is common in popular journalism, for example.

The other answers are spot on, but the phrase was used in Community, a comedy on NBC. #justosyouknow haha

Just as another point of view as a college student in America: Even though I understand it, I almost never hear this, especially among friends.