People here that are saying this isn't war are being silly. Apple's Google hatred is now being kicked into high-gear. The battle is in multiple fronts including court rooms world-wide as well as removing as much Google as they can from iOS and Mountain Lion.
The main thing I don't understand is why is Google not fighting back completely. Why would they make a YouTube app that makes the iOS platform more attractive? Why not block iOS devices from accesing Youtube altogether, as well as Gmail and even Search? Apple is dead set on trying to kill Android but Google isn't trying to kill iOS, it's weird.
Google doesn't want to kill iOS, they just want people using the web, and smartphones are a great way to get more people there. Android's purpose to get lots of people using smartphones, whether it's by using an android device, or by putting price pressure on iPhone.
The future of consumer computing is all mobile. Everyone realizes this. The companies that control the mobile platforms will be the biggest richest companies in the world over the next ten to twenty years. To think Google is only in the fight for its search revenues is to believe that Google is not thinking strategically long-term. In any case, if Apple ends up monopolizing the mobile platform there won't be any search revenue for Google.
With their 20% global marketshare vs 60% for Android, I think there's little chance of that happening, particularly if you take account of which markets have large potential future growth. There's no real reason for Google to play hardball if they can get money out of Apple customers today (just like Microsoft sold Office for Mac and for many years, possibly still today, made more profit on an average Mac sale than Apple).
The main thing I don't understand is why is Google not fighting back completely. Why would they make a YouTube app that makes the iOS platform more attractive? Why not block iOS devices from accesing Youtube altogether, as well as Gmail and even Search? Apple is dead set on trying to kill Android but Google isn't trying to kill iOS, it's weird.