1) The answer wasn't "we'd like to do this but we're super busy right now, how about later" or "that's super complicated, will you guys put in a lot of the effort". It was a pretty direct no. We would have been willing to do much of the work.
2) My recollection is that we talked about it around a year after Chrome was released. Chrome Beta release date: September 2, 2008 Date of WebKit2 announcement: Thu Apr 8, 2010 (after <1 year of development) I don't have records of the meetings where we walked though.
3) Does the reason for saying no affect whether our choice to make our own thing was reasonable?