Your understanding of the technology here seems very fuzzy indeed. What I was talking about was HTML 5.0, which already gives coders the ability to embed videos in web pages a la Youtube.
The SproutCore stuff is JavaScript which is also already supported by all the browsers out there and is not something proprietary from Apple (as you seem to be implying by your "javascript-include" comment.) Flash is still a good solution for animations and advertisements but now (relatively) lousy for video embedding and really poor for rich web application development given that it's proprietary and only really works well on Windows.
If you were creating a web site today, and all you wanted was to embed video, the HTML way is clearly the way to go. If you want rich functionality that's seamless across browsers, then JavaScript would be a good choice now for that given these new SproutCore tools.
What I am saying is that since web sites are dynamic and are redeveloped over and over again, if you want to target the "bleeding edge," all those millions of new iPhone users, as well as all those millions of new Mac users .... you might want to drop the use of Flash and use combinations of these standards based technologies instead.
You're missing my point entirely. I agree with you completely. Bleeding edge and "Web 2.0" has long ago moved away from Flash and I'm not doubting that Javascript/CSS is the future of the web. I refuse to use/learn Flash and I'm doing everything using Javascript/CSS, and besides wanting to use CSS3 everywhere, it is still the best way to present the web IMO and the most compatible.
My point, and only point, is that many many sites *right now* still use Flash. So if Apple wants to present the web as it is *now* using the iPhone, it will need Flash from Adobe.