Now Google still has maps on the iPhone, but they get all the extra data they wanted from users. Apple now has full control over the default mapping experience as well as all of the data collected from their Maps app, and it's not being used to feed a competitors service.
You're right, a ton of effort was expended by both companies to arrive at roughly the same place they were before from the users perspective, and they both lost something from it as well. It would have been easier if they could have just come to an agreement, but one or both sides just weren't willing to give. I don't think we'll ever know how the negotiations truly went down.
edit: It's hard to tell from your posts, but I just want to clarify that Google didn't write the original Maps app -- Apple was always the one writing the default Maps app for iPhone. Google only provided the data.
You're right, a ton of effort was expended by both companies to arrive at roughly the same place they were before from the users perspective, and they both lost something from it as well. It would have been easier if they could have just come to an agreement, but one or both sides just weren't willing to give. I don't think we'll ever know how the negotiations truly went down.
edit: It's hard to tell from your posts, but I just want to clarify that Google didn't write the original Maps app -- Apple was always the one writing the default Maps app for iPhone. Google only provided the data.