I don't think Google Earth has any capability to do what you suggest, in fact I think the HTML content of the balloon has to be contained in the KML file, so you couldn't even do the transformation with a php script.
What you can do however is have a script create the KML in the first place with the contents of the web-service already coded.
Or you could the description balloons contain img tags that point to a script that will generate the return form the web service as a image. This could work from a static KML and still have the contents of the balloon dynamically update.
Alternatively you could use a (view-based refresh) network-link that, takes the current view and forwards it to an online script, works out what locations are visible and returns appropriate KML to the client. I suspect this is basically what you are after as want to be able to have the information fetched in nearer real-time than having statically generated KML files.
So the basic answer is you can't do what you ask without the intervention of a little script somewhere on the internet (unless of course the web service can return a image in the first place

)