Apple's decision to go with an in-house map app has been a long time coming. They've been acquiring mapping companies for the last few years and have been (attempting) to build that core competency so that these kind of issues were minimal when they made the switch.

As far as Google giving them turn-by-turn capabilities-- that's really the special sauce that sets Android apart. It was probably available, but at a price that Apple didn't want to pay. Plus, Apple probably didn't like that they weren't getting their 30% on the revenue from local search in the Google Maps app.

So, in the long run this will work out for Apple. Sure, the users will be affected in the short term and it may never actually be as good as Google Maps.... but hey look, shiny pictures of 3D buildings