It's clear Google will not (and never were) going to heed any directions given by Apple. Apple probably did approach google about it, but I suspect it's likely that Google held back on the feature due to potential legal ramifications of including the feature. (Remembering here that Google originally entered the market as a phone provider.)
Actually the history is more complicated. Google held off on including multitouch but when Apple banned Google Voice from the App Store things soured. I think it was at that point Google said "Ok, if you're banning our stuff then the deal's off" and put multitouch in Android. So it's not clear how long Google might have held back multitouch if Apple had played nice (I'm sure the answer isn't "forever", but they might have gone much longer).
I.E. they're both as guilty as each other.
Actually there is evidence they had developed it much earlier. Some people examining the source tree found it was basically present in the G1 but commented out. They were even able to enable it with some crazy hacks - more info:
http://openhandsetmagazine.com/2009/01/the-story-of-multitou...
> the following January google launched the nexus one with multitouch
No I'm pretty sure the Nexus launched without multitouch; it was enabled in a release (2.1 update 1, a couple of months after launch). Again, an indication that even as late as January 2010 Google was still holding back - whether it was out of fear or through some hope of reconciliation - no idea. But I suspect the latter. Android was still small enough at that point that getting barred from the iPhone wholesale would have been horrible.
I think we're more or less agreeing here. I guess my only point is that to talk about any one incident in the chain in isolation is highly misleading.
How could Android have "borrowed" multitouch for its basic design when Android OS didn't even support multitouch until nearly 3 years after the launch of the iPhone, not until Android 2.1? If anything, Google showed remarkable forbearance in holding off on such a desirable feature for so long, as it turns out, merely at Apple's say so.