Access was in fact limited to validated students. I think the administration was concerned about graduate students and others who weren't authorized having access to the data.
What's the problem with graduate students having access?
At the place I went to graduate school we could view the same info as undergraduates in terms of course timetables and instructor evaluations, and it didn't seem to cause any problems.
I think that strategically, Apple would always have wanted its own Maps app. As the article states, it's a hugely valuable source of road traffic and other geo-related data.
The split was inevitable, and while Google may have accelerated the split, I don't think it's really a mistake on their part.
