Both turn-by-turn and transit directions are available as 3rd party apps. Transit directions apps are free while turn-by-turn are fairly expensive (though I haven't checked recently). Despite having an iPhone I still have a GPS in my car, and since I started using iOS 6 in June turn-by-turn has become a staple of what I use the iPhone for. Apple is taking a short term hit in order to serve users better in the long term. Though maybe it would have been wiser for them to wait a year before switching. I expect this problem will be solved in 6 months but time will tell.
I agree with this. The blogs mocking 3D view (clearly a gimmick) or missing campus buildings are missing that Tom Tom turn by turn has an incredibly amount of real world knowledge and usability baked in for the larger market.