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answers:

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Hi. I researched this, read the TOS and only got more confused. I want to develop a desktop application (Java or Objective-C) using maps. What I'll actually need from the maps is to visually set a starting point, and an end point and get the distance in km. How can I do this (API or interface), and am I allowed to use Google Maps API in this manner?

A: 

The Google maps API needs an Iframe. So you'd have to embed a browser in your app. At which point it 'should' not violate the license. The API and the related is http://code.google.com/apis/maps/. There is a discussion forum there as well to ask License specific questions.

There are specific API calls to do exactly what you're looking to do.

MandoMando
A: 

Indeed, from that website's faq, I got:

Can I use Google Maps in my non-Web application?

Yes, the Google Maps APIs can now be used in Desktop applications, provided that they adhere to the other restrictions of the Terms of Service. Note that in order for a desktop application to be deemed "publicly accessible", there must be a publicly accessible webpage from which it can be downloaded. See Section 7.1c of the Terms of Service for more information.

Now I only need to find out how to implement it in a desktop!

Rafael Campos