I call bullshit
While Apple might have made a deal with Google. I very much doubt that "unnamed source" would have been privy to the details of the agreement. Anyone that has worked with Apple knows how tight the information flow is and I very much doubt that more than a handful of very trusted people would know the actual story. The Google people that deal with Apple will know to respect that secrecy too and would present it internally as an independent Google position rather than some deal struck with Apple.
If there is indeed an "unnamed source", as opposed to a journalist's fabrication designed to give credibility to a speculation, then "unnamed source" is most likely a delusional character off the streets with a desire for 15 seconds of anonymous fame.
It makes sense for Google to drop multitouch:
* The threat of litigation could reduce the desire for Android amongst handset vendors. Don't want to threaten uptake.
* The desire to keep a consistent look and feel across platforms so that all apps work the same regardless of multi-touch or not. Having some platforms and apps support multitouch would fragment the experience somewhat.