Google Ready To Offer Navigation App For iPhone if Apple Agrees
iphonehacks.com
iphonehacks.com
Overall, I think I'm beginning to understand Google's mobile application strategy better. They want their apps to win (or at least be popular enough to be a strong beachhead). Viewed from that perspective, Android is as much insurance (that they don't get cut off from an important application area by an OS/device vendor) as it is something they want to have adopted.
To Apple, I would think that equaling the playing field with this feature is much more valuable than their $30 for each TomTom app.
This time it is Google bringing (or trying to bring) killer apps to the iPhone (voice search, Maps/Navigation, Google Voice, etc.) with a long-run intention of (among other things) applying what they learn to their open(er) platform.