Why did Steve Jobs recommend Tim Cook to replace him as CEO rather than Jonathan Ive or Scott Forstall (the product-focused right hand men in hardware and software, respectively)?

The short answer is really simple: Tim Cook has now served as CEO of the company on three separate occasions (each while Steve Jobs was on medical leave - including from January of this year until today when he was formally elevated to CEO). In each instance, not only has Apple survived, they've thrived.