You - like many other folks - have confused actual standards with defacto standards.
Let me be very clear on this - Flash is NOT a true standard in any way, shape or form. It only has marginal defacto status due to it's widespread use (and mis-use).
Like it or not, understand it or not, Apple is doing the Internet community a huge favor by sticking a knife into Flash. There's a suitable replacement for Flash, and Apple is demonstrating this via the iPad.
There's a huge portion of the Internet currently held hostage by Flash, which is a proprietary product. Apple is showing that there actually is an alternative.
Letting up on Adobe simply lets Flash hang around for longer. Adobe did themselves absolutely no favors by having a crappy Flash implementation on the Mac - I'd wager that's what ticked Steve off in the first place, plus all of the crappy ports of the other packages. Now they're getting comeuppance, can't be sad about that - they've earned it.