I am a big fan of Apple products, but it is a bit of a biff to tout a product as being the best way to experience the web when it's pretty easy to see that that's not the case with the iPad. I understand that flash is a bit of a hog but I mean if the other tablet companies are using it, then why can't apple? FAIL. The iPad is such an amazing device that will perform less than expected in the marketplace do to this MASSIVE oversight. Like someone said before, no flash in the iPhone is understandable, no flash in the iPad goes against everything that Apple says the iPad is.
I agree that this is a risk, but I can't call it an oversight. Nor do I agree that Apple "can't" use Flash. It's pretty clear they are choosing not to. Jobs isn't an idiot. He knew what sites he was going to visit on that onstage demo.* Apple knows what they are doing (and I don't mean that they are RIGHT. Just that they are doing this Flash-block on purpose).
Whether it backfires remains to be seen.
* the advertising video and images was also intentional and shady, in my opinion. But I don't think it changes the idea that Apple is purposeful in its Flash-stance.