This like saying Google is not on equal footing with Bing on social media integration, because it doesn't get the type of API level that Bing gets from Facebook.
Does Google want to "maliciously" block Youtube from WP8? Yes. Does Facebook maliciously block Google from getting any of their deeper level API's? Yes.
So now can we also stop pretending Google owes anything to Microsoft? I wish the situation for all platforms was different, too, and there was a lot more collaboration between them. But I also understand why Google is doing this. It's retaliation for all the crap Microsoft has done against Google over the past few years, too - the anti-trust lawsuit, the Gmail ad, the DroidRage, the Scroogle, the patent license extortion from Android (and Chromebook) makers, and on and on.
So I can't exactly say I feel sorry for Microsoft, because they are not innocent, even though they try to play it like that in the media. But this situation will become worse for any user that isn't fully committed to one platform or another, and that's just the unfortunate reality of the tech war today. Maybe it will get better in a few years.