Are Bing Maps this horrible? Couldn't they license those if they didn't have a choice? Or what about MapQuest? What about the maps used by GPS units? Couldn't they have made a deal with Garmin or Tomtom or someone like that? It may have taken more work than integration with Google, but it'd almost definitely take less work than starting from scratch. I definitely do not believe that their hands were tied and they were forced into creating their own shoddy, incomplete system.

On top of all that, I think Google has more business intelligence than to actually let the contract for iOS maps go. Maybe both sides were just bluffing and never thought the one party would cut the other loose, or something like that, but you'd think with a deal this big at some point someone would come back with their tail between their legs and reopen negotiations.

Of course, it's all speculation at this point anyway. It'd be nice if someone with knowledge could come in here and elucidate, though the likelihood of that is really small.