There is no way that it was a unilateral decision by either company. Clearly there was some offer (e.g. more money, dropping patent lawsuits against Android) that Google would have been happy with. Or some terms that Apple would have been happy with (e.g. lower cost, access to more API features). It's not either party's fault alone that they couldn't agree about the terms.
this would be the worst strategy ever. So instead of becoming the major search for web and places/location on what would be close to 90% of the worlds smart phones, they instead would give up all the data and being the default search on the ios platform. Theres no way people are going to abandon ios over a sub par maps app.