> would Steve Jobs have done this? Or would he have created his own headphones and music streaming service?

I don't know, would he have? You asked the question in such a way as to imply the answer that no, he wouldn't, but you can't actually know that for sure. Also, we shouldn't be holding Apple to the standard of 'Steve Jobs was perfect so if he wouldn't have done this then it's bad'; Jobs made his share of mistakes anyway.

The confusing part is that Apple is spending $3bn on a company that makes mediocre, overpriced headphones with lousy sound quality. It makes no sense to me that they would buy a company like this when they have the money to create their own headphone line with better technology, equivalent or better design, and overall better result, likely at a lower price.

I guess we'll have to see where things go from here.