So you're suggesting that without Google specific proprietary apps and services that Android doesn't boot up and the phone can't be used with third-party apps?
The operating system is open source. You are trying to say Google apps and services are part of the operating system, but they aren't. I take it you've never installed a custom Android ROM before, who frequently don't package gapps? Are you suggesting that before you have an operating system, you have to install the gapps APK?
Because that is all the Google apps are really, are one iteration of a group of apps for functionality. You can always use F-Droid and install great open source alternatives.
Because they literally have an open source operating system that is being used by a multitude of phone manufacturers, kiosks, home security systems, developers, hobbyists, security experts, Amazon Kindle, etc without any licensing fees which can be audited by anyone.
Android Location API uses Google services to provide better location data using Wifi hotpsots and other devices. I wouldn't expect to be able to use Google services without Google. You don't have to use it and get accurate results without it as well.
As you can see they also provide examples of alternative apps that can be used that do not rely on Google, or you can install F-Droid and use apps from the open source marketplace that are open source as well.
This is much more than Apple, who won't even let you install apps outside their app store. While it would be nice for Google to open source their apps as well, they aren't necessary and there are plenty of alternatives and phone manufacturers who have built their entire reputation on providing an alternative to the Google experience while using Android.
Little as in what? You're being very vague. Do you want to use official Google Apps without the Google APIs? At least the OS is open source, but I can have a very functional device without needing gapps. Same with COS on their cloud platform. Apple is actively preventing users from even installing apps outside their app store.
How do you know? Do you believe everything Apple tells you? Do you even know what type of encryption they are supposedly using in the cloud? What about when you login to your iCloud account, do you not think they can access your data if they wanted to?