Apple's main issues are with their location information from TomTom. If apple is able to partner with a company with better data, these types of problems should not be nearly as bad.
Here's where Apple's maps product is better... The maps are vector based so there is not such a huge dependence on a data connection. I live near the pine barrens in NJ and google maps is mostly worthless when I venture into that abyss. Apple maps has worked flawlessly for me there. Locations where data connections are poor, apple maps will probably be a better solution. Plus, Apple maps look nicer, but that is hardly a critical feature.
To say apple should just give up is silly. I've used google navigation since the first day the alpha was leaked. It has only been in the last year that nav has gotten so good (used to have maddening ui problems with the zoom going crazy). Apple's initial maps release is much better and more refined than what google initially release. Fortunately for apple, I think they'll get their data issues mostly fix in 2013 and have a very nice alternative to google maps.