Frankly, the vast majority of users, and developers, and content providers, DO NOT care what you personally want, no matter how much you roll your eyes.
Flash is on virtually every computer on Earth, and pretty soon it will be on virtually every smart phone as well. Except the iPhone, of course.
Flash works very well, for the vast majority of users. The fact that Apple has not expended the minimum effort required to get Flash working more efficiently in OS X, is mostly problem for only those relatively few of us, who prefer to use Mac OS.
(In my testing on OS 10.6.1, Safari is by far the worst of all browsers at handling Flash: it pushes the CPU to 77%, while Firefox and Camino stay at less than 49%. Safari is also by far the worst on Windows 7, where on the same video it runs to almost 30% of CPU, while IE8 is at 1%, and Firefox and Chrome are at 4%.
The vast majority of users enjoy what Flash provides.
And, Flash does things which would be impossible, or very hard, or prohibitively expensive, to do with other currently available technologies, and deploy them for all browsers and systems.
So, I repeat: the rest of the world DOES NOT care, that you, and a handful of weird backroom guys, have an irrational hatred of Flash. Move on.
The bottom line is, if Apple doesn't get Flash on the iPhone, it will quickly lose market share to Android. It's a HUGE missing feature, bigger than cut/paste and turn-by turn navigation and mms rolled together, and you can bet it will be advertised as such.
I'm amazed that you investigated so heavily the CPU usage and yet STILL came to the wrong conclusion, that this is Apple's fault.
For the record, you're completely wrong that FLASH works well on anything but Windows PCs.
Did you not notice in those numbers that FLASH doesn't work well on ALL MACS ON ALL BROWSERS ??? And FLASH is the reason for crashes on both POWERPC and INTEL Macs, even brand new Macs, from what I'm reading in other threads here on MacRumors.
So, how again is this Apple's fault that FLASH doesn't work on any recent Apple platform, iPhone, PowerPC, or INTEL?
Because Adobe doesn't care and has written crappy software. It has nothing to do with Apple.
Not much else crashes any of my Macs, so how is this Apple's fault?
Can you imagine what would happen if Apple let the current version of FLASH on the iPhone and peoples' phones started crashing like their Apple Macs are now? It would be on FOX NEWS!
Apple's making the right call here. The ball is in Adobe's court to get it right first on Macs.
Then I'll insist Apple let FLASH on the iPhone, but not a day sooner.
And I will bet dollars to doughnuts that your Android prediction turns out wrong too, FLASH or no FLASH.
I am
constantly going to websites that I cannot view because the iPhone is lacking Flash player. You don't like Flash? Great, if there is something better out there, then competition will cause the better product to prevail. But for now,
iPhone users are being deprived of THOUSANDS of Flash websites that other smartphone owners are able to view!!!!!!!!!! 
Why is Apple blocking Flash?
This is one for the FCC! Same reason that Microsoft used to block Netscape. Apple wants websites to use Apple software and not Flash. FAIL! It's a violation of free markets! Here comes a Netscape-Microsoft lawsuit in the Supreme Court, except this time with Flash-Apple.
If FLASH is an epic fail on both INTEL and POWERPC Macs and with both Safari and Firefox on Macs, how the hell do you think it's going to do on the iPhone?
This is NOT Apple's problem in my opinion. Adobe has just dropped the ball.
If FLASH crashes on most people's Macs, how do you think it will fair on the iPhone, since it's mostly the same browser?
Please people, think before you put your feet in your mouths.
