I understand what you mean but I don't think you understand me...
1. iPhone is primarily - a) phone b) MSGing device c) email device d) gaming device and only perhaps then a browsing device... No one really expects to have some "browsing experience" using iPhone... Frankly its only good for quickly checking the news site or similar.
2. This fact is proven by stats as well only about 0.40% of entire web use out there comes from iPhone OS (that is iPhone and iPod Touch combined!)
Not even 1%
3. I am definitely in a market for small(ish) portable device that would allow me better web and email experience then for example netbook and when I heard about iPad I thought - this is it!
But apparently not so for obvious reasons... :s
Not sure about those numbers. Everything I have read says that most mobile internet browsing comes from iPhones which primarily why AT&T has such big network problems. I know I browse the Internet on my phone a lot. More than on my many mac laptops. Will be even more on my ipad. Not having flash has little effect on my life but that's because the sites I view don't use it.
It is annoying from time to time when I do need it such as when I wanted to view my wedding photos online from the photographers website but that should only happen once.
From what little I know flash is a source of crashes and bugs so I say to hell with it. But it's just me and we all have to make choices for ourselves. Hopefully revision 2 has something that meets your needs.
Best