This is a sad day. And I say this as an Apple fan.
I love their products, but they seem to be turning into bigger and bigger control freaks as time goes on. I'm worried about Apple becoming *too successful*, because if they do they are likely to engage in monopolistic practices, which still stifle innovation and give people little choice in platform.
Apple really needs to learn to play well with others.
Lots of companies have principles which they believe lead to their success and from which they won't budge. Apple believes that the tight integration between their own services is one of their winning principles - it might very well frustrate you when you reach their limitations and have nowhere to go, but it provides an overall better experience.
Apples principles in that respect haven't changed since the iPod.
People think that Apple want to monopolise all of this stuff because they want control, when really it is much simpler than that; they just want to make the best experience. If you can deliver that by partnering with Google for maps on the original iPhone, great. If Google withhold features, and the best experience now can only be delivered by building your own maps, they'll do that.
Jonny Ive summed it up recently: "We are really pleased with our revenues but our goal isn't to make money. It sounds a little flippant, but it's the truth. Our goal and what makes us excited is to make great products. If we are successful people will like them and if we are operationally competent, we will make money".
All of Apple's "monopolistic" businesses (iTunes, AppStore, anything else) pale in comparison to their hardware revenue. To make loads of money, they just need to shift lots of devices. They don't need that direct extra income from the other integrated services - it just makes a better product (which in turn, sells more devices). Is actually a hugely risk strategy - if your execution ultimately doesn't deliver the best experience, it could be a huge disadvantage (looking again at Maps).
One example of how Apple takes building great products more seriously than monopolising content is on AppleTV; it's had Netflix and Hulu support for ages (which has also been heavily promoted). Ultimately those things detract from iTunes sales, but including them in the product makes the experience much better because they're so popular.