Apple is most certainly thinking of their users. Users vote with their dollars, and users have voted for Apple devices that DO NOT support Flash. Content providers want users to get their content. Now that Apple users have chosen no flash, content providers have to decide to alienate Apple customers or move away from Flash. I would bet a lot of money the latter happens. In the end, the users cares about the content, not how it is provided.
Most iProduct users that I know are extremely pissed that their devices don't display Flash - or Java - content. It actually makes the platform less versatile, less usable and less valuable and the users feel restricted and limited in their possibilities.
Actually, your argument is a negation of the reality. Content -is- provided in Flash format, many online businesses still require Java capabilities in your browser and Apple is giving its customers neither. Their devices lack the necessary compatibility with several of today's de facto standards. And on top of that, Apple even CENSORS the content on their devices.
Now what will the users do? They will switch to a compatible platform that provides it all and that without any censorship: Enter Android. The rapidly growing market share of Android devices speaks volumes about what the users are choosing.
Apple are shooting themselves in their own foot with their ridiculous walled garden policies. Again. But Steve Jobs is notorious for doing this since the 1980s, so there's nothing new here, really. He condemned the Mac to be a niche system, and now he also condemns his iProducts to be niche systems by making the same mistakes again.
Steve Jobs didn't learn any lessons from the desktop war against the IBM PC clones and Microsoft and he obviously never put any thought into the question why Apple had lost this war. Today the battle field has changed to mobile platforms, but in its essence it is still the same war: A closed platform owned by one single entity against an open platform shared and used by the entire rest of the industry. Now it's no longer the Mac against DOS and Winodws PCs, this time it is the closed iPhone OS and AppStore platform against the open Android platform. Everybody can build Android devices, and everybody can write software for Android with whatever tool and language pleases him.
The open platforms have always won the battles against closed platforms. There is zero reason to believe that this time the closed platform will prevail.
It actually can be reduced to this: People want the Freedom of choice. And that's the one thing you cannot get from Apple.