The reputation of the device and the brand ARE threatened. For the first time, Apple has taken a perfectly functional application away from its users, and replaced it with a piece of crap; something that does not work for the majority of users in the world.
After Steve's demise, everybody has been waiting if Cook was able to fill his boots. And apparently, he is not.
Apple must have known that they have a problem: the map experts hiring spree started several weeks ago. And yet they went forward with a sub-par product, throwing away user experience for the sake of a business model.
Instead of re-releasing the original GMaps, the users get vacuous promises for improvements that may well take years. And to add insult to injury, Apple prevents us from rolling back to iOS5 after we installed iOS6.
Since this co-incides with a new adapter and a new screen form factor, a lot of people may jump the iOS bandwagon for Android this time.