Yes, that's all probably true. I didn't delve into the wider politics of the iPhone vs Android wars but that was certainly a part of the reason for Apple not working closer with the Maps team.

It's unfortunate that Android became something of a self-fulfilling prophecy in this regard. It was created largely because of the experience of Maps trying to make mobile clients in a fragmented space with poor APIs (J2ME, Symbian, etc). Then Apple effectively took over the frontends of Google's most important services and in many ways did it much worse than the Maps team themselves did, but the popularity of the iPhone rendered much of their work useless. Google didn't at that time care about phones with the same burning passion Jobs did: Android was first and foremost a strategic play. Many Googlers, even senior Googlers, were happy to be seen using and praising their iPhones. But the inverse was also true: Jobs didn't care about Maps with the same passion that Brin & Page did. It should have been possible to forge a genuine collaboration, there were certainly no technical barriers.

Unfortunately Jobs' bizarre and self-destructive belief that the iPhone should effectively never have serious competition put both companies on the path to ultimate divorce. Users are still feeling the effects of that today. His paranoia about other companies copying them was also misplaced: as far as Maps were concerned the problem was rather the opposite; Google wasn't copying Apple's features, Apple was copying Google's features, but only after much pressure and negotiation!

Apple also had a schizophrenic attitude to advertising: their total refusal to integrate ads into iOS Maps meant that Google was destined to bleed vast sums of money on mobile maps forever, and the more popular the iPhone became, the more money they'd bleed. This was no strong principle as Apple tried to launch its own ad network which sucked and was quickly forgotten about, so it looked a lot like some sort of psycho "revenge" for Android - a project which had been initiated before the iPhone project itself had. Jobs seemed to believe that the moment he announced the iPhone Android should have been cancelled and anyone not willing to pay his steep prices abandoned to J2ME feature phones for good.

Very, very few companies would be willing to tolerate another company totally controlling the entire user interface of their online service, blocking their only revenue stream and in an environment with almost no cooperation (i.e. Google would find out about what features Apple had added at about the same time everyone else did). Although it was understandable in the very first versions of their Maps app were written in house whilst the APIs and product were still baking, it became less and less tenable with time. Separate apps was the obvious way to resolve that problem, but Apple forbade that too.

If I recall correctly the straw that broke the camel's back was actually social. Google at the time was desperately concerned about Facebook. They worried that Facebook was an existential threat to the popularity of their services because Facebook had social features and Google didn't. So it tried to add social stuff to everything. This wasn't about Apple at all, it was all about Facebook, but Apple point-blank refused to add any social features to their app. I don't know why not, probably they felt it was a poor use of resources (which it would have been), but that was what triggered Google to write their own frontend app which then got banned.

Up until that point Android had been seen to a large extent as a way to drag the rest of the phone industry into the post-iPhone age, rather than something specifically designed to go after Apple. There was no shame in senior Googler executives using iPhones. But Google saw the fate of Maps as a sign of the dystopian future awaiting them, in a world where Jobs controlled access to users with an iron fist. After that Android was ramped up significantly. It was in my view a huge strategic error by Jobs. Very few companies were able to make software competitive with theirs: Google was basically the only one. If Apple hadn't blocked Google from upgrading its services, it's very plausible Android would have pivoted more strongly into the budget/low end space Apple didn't care about anyway. Social-in-maps put paid to that idea and resulted in Android becoming an OS that is a match for iOS in every respect.