Yeah, I have noticed a decline in the use of flash as well. As a web developer (on the side), I really don't use flash (although I have it if I wanted to). I stopped using it mainly because I did not find it any easier (or more useful) than html5 or a simpler, lightweight javascript applet. I am sure other popular sites plan to move away from Flash, it will just take time (and money) to do it on that kind of scale.
So yeah, I think Apple is trying to use its leverage in the mobile market to kill Flash. Is it bad? Maybe for some (like Adobe). Overall, I think Apple's take is that Flash will continue to get in the way of better, and perhaps more secure, web program languages. I think it will stick around for a while though, if for no other reason because it is well known by developers and they are comfortable using it (kinda like Java).