Amazing how delusional some of the faithful are!
Apple does not allow Flash only because it competes with iAd (and to a lesser extent, with their store content), which was their "secret" plan to become the Google of mobile advertising.
But Google threw a wrench in Apple's plans, by acquiring Android, making it open source, and working with Flash to implement their player and provide hardware acceleration.
A year ago, when Steve was screaming that Flash is dead (just like he screamed before that book-reading is dead, or that Java is dead, or that nobody needs copy/cut/paste), there were a lot of companies planning on creating mobile versions of their sites, to accomodate the iPads and the iPhones.
But now, with the Android steamroller gaining ground and fully supporting Flash, very few are considering mobile versions.
If the Android numbers continue to rapidly grow, in another year, iPad/iPhone users and their lack of support for Flash will be largely irrelevant to the web.
iAd has been a monumental flop, so I expect that in a year or two Apple will let it die, and iOS will support Flash, if it wants to compete.
BTW, Flash is a lot more than video and games. It provides a widely adopted platform to do things which HTML5 cannot do, or it cannot do cost-efficiently.
So I expect that HTML5 and Flash will happily coexist on the web, making it better and more exciting for all users (O.K., all except iOS users).
Also, stop the FUD about Flash running badly on mobiles. Flash runs perfectly nicely on my Nexus S, which is roughly equivalent to the iPhone 4 in terms of power (I am not even talking about the newer dual-core chips available on newer Androids, soon to become quads). I basically don't even notice when it's loading Flash content, or HTML content. It just works.