So many interesting things there. Jobs and Campbell knew each other from Apple antiquity, and both Campbell and Eric Schmidt sat on Apple's board - and Jobs was already ballistic about Android vs. iPhone.
On one hand I understand how Jobs would have been angry about Google trying to poach the Safari team for Chrome, but on the other I completely agree that anti-poaching schemes (as well as non-compete clauses) are harmful to employees and illegal for good reason.
One fair solution for employees would presumably have been to deal with it head on and make competing offers up to the level of the Safari team's actual value to Apple, but companies are rarely enthusiastic about that as it costs them money and encourages other employees to ask for raises and/or to interview at other companies (probably to discover that they are underpaid.)
An interesting possibility would have been for Apple and Google (or Google and Mozilla for that matter) to collaborate more closely on web browsers, although that would have run into problems eventually due to business incentives.
Sadly one of the primary results from Chrome seems to have been the erosion of Firefox's browser share.