Google wanted more control over branding, ads, and user data to be willing to provide any new data necessary for new features (turn-by-turn navigation, vector maps, voice navigation).
As Apple wanted to protect their users' privacy and not have big Google logos and ads everywhere while offering turn-by-turn navigation as a standard feature, they though about doing it themselves.
They probably expected the data to not be as accurate as Google's for a little while (although not as bad as this) but though it was worth it in the long run. They may have done things differently now seeing how it turned out.
Apple doesn't make competitors to Facebook or Youtube because those are not services expected to be preinstalled on a smartphone as they're mainly for entertainment purpose.
I doubt buying Garmin would have done anything. They already use TomTom's data and apparently it's not very good. Funny how you never heard about TomTom having bad mapping data before.
I guess people make a bigger deal out of it now because:
1) It's cool to hate Apple and generate a lot of attention in media
2) They're more easily being compared to Google Maps which has better data than any dedicated GPS company
People make a big deal out of it because it's funny that one of the richest company in the entire world do not have the competency to create a good and dependable mapping solution.
If you want to create a maps app, then you should jolly well do it well, or don't start in the first place if you're not confident of matching the current ones. People don't make a fuss of this situation for no reason. People have better things to do in life than to complain about a simple app, but looking at all the countless problems it has caused and the millions of apparent errors that exist in it , it is really no surprise why people are pointing their fingers at Apple.