The war between Google and Apple may be close to an escalation. All Things Digital reports that analyst Douglas Anmuth at Barclays Capital believes that there is a fairly substantial chance of Bing ending up on the iPad. While the smart odds are still on Google as the default search engine, that isn't the only option Apple has.
Making Bing the default engine on every iPad and (following shortly) all 48 million iPhones would deal a major blow to Google. For their part, Bing has worked out deals with HP, Dell, and Verizon to push their search engine via toolbars. Apple's commitment to the smoothest user experience means that the much-preferred Google is still likely, but far from guaranteed.
Of course, a partnership with Bing would land Apple in bed with Microsoft. I'm kind of hesitant to believe that the two biggest enemies in the tech industry would shack up quite so easily. It all really comes down to this; how much does Steve Jobs hate Google now?