Ignoring all the childish rants, pro this, pro that, etc, I have a simple question.
Will the ported Flash apps work properly with multitasking, new API's, and system resource management techniques present in iPhone OS4?
If the answer is no, then no one can fault apple here. There's no reason they should cripple multitasking and/or create issues just to abate adobe.
If the answer is yes, and the ported apps will work properly with all the new features, then apple has no excuse for this new action, and is simply being childish and monopolistic.
It all depends on the real reasons, not speculation.