Apple had a 5 year Licensed contract on YouTube, Maps and Google Search. That license ended June 29th 2012. It isn't so much that Apple didn't want to integrate these services within iOS as it was Google asking for more money on the license renewal than Apple wanted to pay. This is just business and Apple being a bit of a spoiled brat, decided to go it on their own!
Google has just gotten so tired of paying more in cost, than what they get in return from Apple and decided to push Apple into the future of it's own HTML5 Web, they themselves were crying about in killing FLASH. But..... it's now going to cost them a whole lot more to develop their own services to replace these. Because they simply picked the wrong horse in this race. When they got involved with MPEG LA.
Why? ....Google has successfully turned the tables on that Proprietary Group's attempts to make H.264 ubiquitous enough, to become the default video codec for online content. A major coo has just flown it's flag of victory over the MPEG LA group. After the Apple Microsoft led group pulled a real boner. After they realized all they had were Patent pea shooters to attack Google's VP8 WebM with. MPEG LA decided to pit one side against the other. That all ended up having them blow chunks on themselves. When they surreptitiously attempted to create a VP8 Patent Group w/o Google being a part of it. haha.... FAT CHANCE and the Goog got the DoJ to investigate who this VP8 Patent Group was, and discovered it was.... yeah the MPEG LA CEO! haha.....
Now the gig is up when manufacturers realized Apple Microsoft's Shark had no teeth. Because all of a sudden we have all of the manufacturers embedding VP8 hardware decoders/encoders for free w/o a thing Apple and Microsoft can do about it. Leaving H.264 crying at the back of the bus. Recently demonstrated by Samsung ARM putting only hardware VP8 decoders instead of hardware H.264 decoders/ encoders in their latest Exynos 5250 Dual Super Power Chips, that are set to kick literally all it's competitors to the curb, they don't offer the features Exynos does!
Which means that all the Developers Developers Developers must face the reality that video online will have to face reality. Google now owns 70%+ of online video in YouTube. It's also got all the hardware makers convinced (except Intel) that WebM will be the default video codec in HTML5 Standard. That's why their own Chrome Browser.... only reads HTML5 with WebM content. Making us... consumers who now own Open Source WebM the real winners. Where the most likely codec to be the default video codec in the HTML5 Standard..... is the truly FREE and OPEN ONE!
Face it folks, H.264 is a DEAD MAN WALKING..... and LOOKING to BE A ZOMBIE BEFORE IT'S TIME!!!! ;-D ....and now we just have to wait for the inevitable support of WebM by both Microsoft and Apple!