Google typically releases things like Gmail and Maps as a beta. Some of these will stay in Beta for years before they finally say it is ok. They also started out small. The first version of Google Maps didn't have things like satellite view or street view. The first version on Android just had car navigation. They've built up to a solid working application over the years and then they add features as they go.
What Apple tried to do is jump from nothing to a full version of maps to rival Google Maps. They could have waited on Fly Over, POI's and satellite overlays until it was polished enough to offer everyone, but they didn't. They did exactly what they have always accused everyone else of doing. They released a product that was not as ready for prime time as they claimed. AFAIK, any updates for this may require a full OS update instead of an app update.
Maybe it will work better on the 5 or maybe slower data speeds mess up the pictures. Who really knows. The big thing is that a lot of people said that Jobs was the creative mind behind Apple and were concerned that his death would spell the end of the company. While I don't think that is the case, this is a sign that things are not going to be the same. As others have said, this would never have happened with Jobs still in control.