This is a Consumer Electronic device, not a desktop computer...
Not very professional of Mr. Brimelow, regardless of the difficult spot Adobe may find itself in.
The Flash development tools are very nice. Expensive as well, $700-$1600 for the tool suite. As an independent developer, if I had made an investment in those tools (in both my time and money), I would want to use them on as many platforms as possible.
Apple has a tough challenge in bringing multitasking to a mobile platform. As the OS 4 keynote pointed out, making multitasking work without sucking down battery and chewing up the processor is a huge challenge.
Native Objective C / C++ code making calls to built in Foundation / Cocoa Touch API's is going to have the smallest code footprint, and result the best overall end user performance. If Apple let the app store fill up with apps based on heavy weight cross-platform runtime environments, the end user would suffer. Performance of those apps was masked when they were the only thing running on the device -- but with OS 4.x, you can no longer assume that just one app is running.
Apple is doing the right thing here.
They're trying to avoid the scenario where you buy that $10 game, and it starts causing Pandora to stutter, and Skype to exit due to low memory... The same game written natively for the iPhone would have no impact on the other apps. As a consumer, you won't ~know~ if an app is written in one of these cross-platform runtime environments. And even if the app caused problems, most consumers would probably blame the phone before they blamed the game. (I can't even play super-color-tile match 3000 on this thing...)
Apple is protecting the consumer on their platform (iPhone/iPod Touch/iPad).
They've made it very reasonable to become a developer for the platform. It costs $99 for XCode, Interface Builder, Profilers, Debuggers, Simulator, Docs, Access to the App Store, and 2 support incidents a year. That's a lot cheaper than the lowest cost Flash Development environment.
Plus, you have access to all the tools, and simulator for free to learn the iPhone OS platform. (You just can't load your program onto the device.)
This isn't a desktop computer we're talking about. It's a consumer electronic device. That's a huge difference everyone seems to be ignoring.