But that's not the people Apple is aiming the iPhone/iPad at. They are aiming it at the people who still don't know all the in's and out's of their desktop. Who would need somebody sitting next to them to point out that they need to install Flash for x web site to work, so type this in, then double click this, etc... and then go back to the web site and now it works. Apple is going for getting enough devices out there, that all the web sites out that use Flash to create an HTML5 version just for Apple devices and see how they work. And then maybe use that version also for all the other SmartPhones with browsers based on WebKit, so they don't burn up their batteries with their Flash version. And maybe that web site owner will go, damn, it works pretty good. And I don't have to pay Adobe [or Apple] to create or serve that content, so I'm saving money. Then maybe some will decide to stop serving Flash at all, and for those browsers that can't display their content [like IE6/7/8], they can send a really cheap pay saying "Go to this web site [firefox/safari/opera/etc] and use one of those browser, and this site and the rest of the internet will work so much better for you".
You do realise that current iPhone/iTouch browsers represent only 0.64% of browser share, and most sites couldn't probably care less when they still have the other 99.36% to deal with? 50 million iPads could make it as much as 1% - and still make no difference. The idea that Apple is saving the Internet from Flash is hilarious, frankly. If that was a motivation they would not ship it with OS X. There are other reasons for not supporting it, but that's unlikely to be one of them. And besides, those very same people that you say won't know how to install Flash will also be kind of pissed when the little blue bricks show up all over the place.