What does this patent have to do with hardware? It basically covers the gist of Google Maps. Can Microsoft directly file suit against Google, for their maps site? Or is the licensing easier to figure out when you have a count of physical gizmos?

There has to be literally thousands of patents inside a typical smart phone. As a rights holder you couldn't ask for anything more than a couple of hundredths of a penny per patent / device, and expect someone to pay-up.