WRONG.
Apple could have denied their app.
Yes, if he'd wanted to make the PR disaster even worse than it already was. Can you not imagine the furore had they denied it? Since they'd already approved other maps and navigation apps it would have been blatant discrimination against Google. Might even have been lawsuit territory.
And perhaps you haven't seen the map section on iOS where Apple shows you all the different mapping options we have on iOS, including Google Maps. Even if they didn't deny the app, they didn't have to promote it!
Yes, they did. Think.
The iPhone 5 had just been launched, and mapping/GPS is a pretty important feature for many smartphone users. Apple had to reassure buyers that they could get decent maps on their iPhone 5 straight away, or it could have decimated sales. Taking a hard "you'll use our maps and like them or you'll eat them for breakfast" line would only have made it worse.
Sure, if you're a 'glass half full' person it did emphasise the choice of App
Apple Maps had already received so much bad press that even if they could fix it within weeks, it was going to take much, much longer to shake off the rep (heck, people are still making cracks about Macs only having one mouse button).
As for the 'this whole debacle has given us more choice' issue, Google have done pretty well in pulling a maps app out of thin air in 3 months - especially one that is clearly more than a half-baked clone of the Android version or a thin wrapper on the website. Now, Google have a lot of resources so I wouldn't bet against them doing this, but I do wonder how long this has really been on the drawing board for...
Personally, I was all set to get an iPhone 5 until I upgraded my iPad to iOS 6, opened Maps, hit 'Satellite' and saw a black-and-white cloudbank where my house used to be. That's fixed now, but the question in my mind was "What's Apple going to wreck next in order to spite the competition? Gmail/contact/calendar sync? Dropbox/Google Drive?
Eagerly awaiting (a) the iPad version of Google Maps and (b) maybe an updated Android version for my phone.