You guys completely miss why Steve, doesn't want Flash, it's not about video, it's not about web sites, it's about allowing Flash programs to run that circumvent the app store, it would in essence create an OS container within iOS to run other programs, and Steve can't control that, or gain any revenue. In the end it's about profit and control.
The iPhone lacked Flash before the App Store existed and Apple wanted developer to create free HTML Apps, they don't want Flash because is crap, also Apple doesn't cripple Safari HTML5, that can be used to create free games as well: http://mario.fromlifetodeath.com/
As a web designer I've been advising not to use Flash since 2005, and I was a Pc user back then, this all apple users don't want Flash because Steve Jobs say so is pure BS**t