If you were worried about the demise of the Apple-Google business relationship, the iPad announcement gave you some reason to hope that there is still a lot of cooperation.
Recent reports have had Apple talking to Microsoft about adding their search engine and maps to the iPhone. Steve Jobs put that to rest, for at least the foreseeable future, by saying that the iPad used Google for its Maps application. In fact, Apple's CEO was smitten with the way the iPad rendered Google's maps application as well as the new high definition streetviews (which were indeed very cool).
Older picture of Jobs in front of Google Maps on iPhone
Jobs also touted Youtube's high definition video app as one of the best things about the iPad (11:50 and 23:50 in the 1st Video). He was particularly impressed by a surfing dog in HD.
Eric Schmidt, for his part, took time out of his Davos, Switzerland excursion to tell reporters:
Today, a reporter asked Eric what he thinks of Apple's new iPad. His answer: "You might want to tell me the difference between a large phone and a tablet."
That doesn't sound too bad to me, though others in the media seemed to think it was a strike at Apple.
In fact, Apple's tablet does have a great deal of phone functionality, from recent revelations in the SDK. Apple also recently announced it would allow VoIP over 3G, effectively making its iPod touch and iPad products phones.
Then you look at upcoming Google products including those from Archos and Dell where their "phone/slate/tablets/whatever" are anywhere from 5-10 inches in size. Clearly, Schmidt was just saying that there wasn't a clear category between tablets and phones anymore. It hardly could be considered a snipe at Apple.
Truth be told, Apple and Google still have a significant partnership and the continuation of cooperation benefits both companies immensely. Even if they are competing on more and more fronts.