Obviously you have no experience in the matter, so you can stuff your shill comments. If Nexus One and Palm Pre can run Flash, then a Whiz Bang iPhone ought to be up to the task, especially as they become more powerful over time. Or will Apple simply stick with old processors forever?
But not if Adobe did not spend the time to optimize the code to run as good on the iPhone/iPad platform. If Flash were available for the iPhone and it was a poor implementation or a simple port that did not take advantage of the hardware and supported API's that Apple provided and because of that it ran 20% slower on an iPhone and ate up 10% more of the available batter time than it did on the other platforms then it would potentially damage Apple's brand.