Or, as translated from Apple-spin-speak, according to the allthingsd story, Apple wanted to commoditize the Maps data, Google wanted more say over the app, including for it to be called "Google Maps", and feature things like Latitude and other features Android had.

In short, Apple wanted the maps data, but did not want it to be "Google Maps".

If it were really just about withholding features from iOS, why then are most major Android features on iOS, including Google Now, and including a version of the new Google Maps before Android even had it.

Sounds to me like Apple was pulling a John Boehner, refusing to compromise.