Most (or should I say all) of the posters here are missing one important factor.
Apple might not have Maps as good as what Google has - it might not have StreetView coverage for as many cities worldwide as Google has - but that is besides the point. The point is, can Apple provide a solution that is many times better than the current Maps application on the iPhone? The answer to that is a resounding YES.
Maps on the iPhone is pathetic. There are no turn by turn directions. There is no Street View. There is no traffic capability. There is very basic functionality to do Geotagging, etc - you can at best bookmark locations on your device - cannot make your locations publicly available. Even simple functionality like getting GPS coordinates of any location is ridiculously complex in the current Maps app.
This is the low hurdle that Apple needs to cross - so obviously it is guaranteed that Apple will cross that hurdle easily. As for the Maps data itself, Open Street Map is for the most part a money issue, not a technology issue. With the support of Apple, it is very likely that OSM can improve the quality and accuracy of the maps tremendously.
Google is trying to steal Apple's thunder by announcing 3D Maps on June 6th - but really this does not matter. Apple is in a no loss situation here - whatever they come up with will be better than the current Maps app.
The only way for Google to steal Apple's thunder would be to launch a full blown version of Maps for iOS - with all the features that Android has. If Google does that, Apple's launch will be muted - because no one would want a version from Apple that has lesser features and lesser accuracy than the Google version. But even if this happens, it is a win-win for Apple's customers - and therefore for Apple itself!
"Maps simply needs to be "good enough" although the solution will far surpass that standard." - MacBook Pro
In all seriousness, have you ever used an iPhone?
- Maps does have turn-by-turn directions, are you referring to dynamic routing (which the Apple iPhone does not have)
- Maps does have Street View, in fact, the implementation is so elegant I expect the user interface to remain substantially the same
- Maps does provide traffic information which appears to be exactly the same data as Google Maps on Android-based smartphones
- Maps can share your location via email, SMS/MMS or Tweet for those who want to broadcast or narrowcast their location to friends or family that capability is provided in the "Find Friends" app
I do agree that the bar is set fairly low though. Maps doesn't need to compete with Google Maps on Android, any new version of Maps need only compete with the current version of Maps.