The only mobile device out right now that has full Flash support is an Android device.
1) It didn't work.
It loaded in the browser and played a video so choppy you couldn't watch it.
2) It crashed the browser twice.
This is really part of the "It didn't work", but really the usability problem of it being too slow to actually use was the biggest problem.
3) We want it for watching video and the occasional Flash game.
HTML5 is better for video and Flash based games will be awkward when designed for a computer. The only other use is ads and KILL THEM WITH FIRE. I hate Flash ads.
Flash is bloated, slow, and awful on every platform except Windows. Evidence? Just use any version of it in OS X.
Flash support in theory (with an on/off switch) isn't a bad idea. The current implementations on phones are too quirky, too bloated, and too awkward to use.
Maybe in a year or two, but for now I'm fine with no Flash on the iPhone. Jobs was right, but about the wrong product. Flash, not Blu-ray licensing, is a bag of hurt.