Apple needed Google back then. That's likely a major reason why Jobs invited Schmidt onto the board.
Just imagine the iPhone debut without Google Search or Google Maps. No pins dropping. No funny coffee order.
And then a bit later on, imagine the iPhone without any YouTube videos converted by Google to run. Jobs might've well had to allow Flash.
Not to mention Google cell tower locating to make up for the lack of GPS in the original model. (It's even more ironic that their cell database was built up by pre-iPhone smartphones that were using Google Maps.)
Google cell tower locating.....seriously? They were never "google" maps. Have you ever seen google maps and the associated garbage thrown at you. It was only the last couple of years of using google data that Maps actually started giving a reasonable percentage of useful hits. In the beginning it was 90% totally irrelevant and unrelated rubbish. The only thing that worked consistently was location, which had nothing to do with google. The google app so was excruciating, I used it about five times before deleting it, and still don't bother installing it. Have you not noticed that google results are more like yahoo and the rest from the 90's now than when it started?
As far as your precious flash is concerned, the toxic dumping ground of the internet, there is no way it could ever run on a mobile device that needed to run more than an hour on a charge. If things needed to have moving pictures on mobile, it had to be HTML5 or related. I don't know about you, but for the first three or four years, the most I could get youtoob vids to play was about five to ten seconds before excruciating wait time and two second stutters made me give up in disgust.
Schmidt and google probably seemed like a good alliance against the Microsoft hegemony in the early 2000's, till they started stabbing Steve in the back. That Russian prick probably had ex an KGB'er stab Steve with one of their favourite radioactive toxins, like they did to other threats to the mother country.
It'd be a laugh if google was actually developed and funded by the soviets to data mine the planet. It would account for a lot of their behavior and tactics.
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