Yes the consumer web offering is free (and includes Google ads) and is still available through the browser on iOS 6.
You are wrong about the revenue direction. Apple were a significant provider of revenue to Google for map usage. Below is just the article I picked but Googling for 'google maps ios revenue' brings up quite a number.
I suspect Apple were upset at the limitations believed to be imposed on them by the Google contract (no turn by turn) and it was expiring anyway. It was probably negotiated when they had no idea how sucessful the iPhone was going to be. Google probably also wanted more control to insert advertising and the fact the two firms are now competitors in mobile OS's and at legal loggerheads made agreement unlikely.
You are wrong about the revenue direction. Apple were a significant provider of revenue to Google for map usage. Below is just the article I picked but Googling for 'google maps ios revenue' brings up quite a number.
http://www.ijailbreak.com/news/apple-ios-40-google-mobile-re...
I suspect Apple were upset at the limitations believed to be imposed on them by the Google contract (no turn by turn) and it was expiring anyway. It was probably negotiated when they had no idea how sucessful the iPhone was going to be. Google probably also wanted more control to insert advertising and the fact the two firms are now competitors in mobile OS's and at legal loggerheads made agreement unlikely.