The sad truth is that many companies, government agencies, and ridiculous bloated corporations are hard locked into old browsers (they even run XP still, like 70% of the windows world) which do not support HTML5. For now, Flash has significant use for these companies in e-learning and video capabilities.
And the flash haters can complain about flash ads (who doesn't hate ads?

), but if flash is gone, you'll just start seeing HTML5 ads that do the exact same thing. Or sliverlight ads. Or whatever. Flash is just a platform for something you hate: crappy ads. The death of flash won't bring online advertising down with it.
P.s.- the HTML5 video on youtube someone posted was awesome, but I liked the content of the demo video even more: a recording real time 3d built into the browser! Cool stuff!
And 90% of all internet statistics are made up.

You guys both have your points, and perhaps you hate flash, but you can't agree on your stats for hating it. Are you guys secretly US Senators or representatives?
Flash plays back h264 encoded videos. It has been able to do that since at least 2007.
http://labs.adobe.com/wiki/index.php/Flash_Player:9:Update:H.264