Ok, this is strictly a personal observation and it has no merit in the technical sense.
Why is Steve Jobs' so stubborn? Cisco is a $175+ Billion company and Apple is at best a $80 Billion company - I guess that doesn't matter to much but I think the perception is that Cisco is MUCH bigger then Apple. Cisco is NOT known for suing anyone, if anything, it takes a lot to get them to sue you. The last big lawsuit I remember is Cisco suing Huawei and they settled that out of court which only re-enforces my point.
I think Apple has missed a huge opportunity to get on board with what Cisco is doing in the home networking space. It is not like they are tied to an operating system at all. Their products are deployed on about every OS out there due to Cisco non-stop acquisitions. If anything, Cisco has become more *nix friendly in the last few years.
Who else would be better to have a loose partnership with then Cisco for the Apple folks? I fail to see why Apple refused to license something that was so obviously in the licensing domain of Cisco. I am starting to think that a lot of the "free" as in free beer folks are right on trademark, copyright and other issues.