You are right that the product comes from the business model. You are however completely wrong about what Google should do. Advertising is not an evil thing that needs to be eliminated. It is a much better revenue source for building services compared to selling hardware. Apple organization is fundamentally built around selling hardware and software as a package for an upfront cost. The organization is design to perfect something than release it. This is 100% at odds with what you need to do with services. You need to iterate all the time and not be trying to perfect something for the new iOS release.

Your advice would lead to maps, gmail, etc be becoming worse but their hardware still not keeping up with apple.