Revisionist history at its best. That's not how the story goes at all.
Apple asked Google for the new features provided by the back-end and for permission to implement turn-by-turn using Google's data. Google asked in return for more prominent branding in the app and for Apple to integrate Lattitude (Find my Friends, but by Google) into iOS. Apple didn't see this as acceptable and thus leveraged their mapping acquisitions to build their own.
Google never refused anything. They simply made an offer Apple didn't accept.
IMO (assuming this is correct) I've always thought it was a pretty fair deal. I'm sure Apple could have extended that deal ever so slightly to get the latitude 'find my friends' on the iCloud site.
In hind sight, it's a hugely better option than the one we have now.