What is Netflix doing on the iPad then? That was one of the first iPad apps, and it may well be the most popular. That competes with iTunes.
Agreed. But, I think it's more to do with apps and music; remember back in 2007 / 8 where the app store was just taking off - they wouldn't want any competition then from flash games - where the developer can get 100% profit.
Here's a little nugget for you about Flash vs. HTML5. Basically, you're saying that HTML5 is not at the level of Flash. I'll give you that, but HTML5 is not going to progress until it's used and made better. Adobe and Apple are both members of the standards committee that stewards the HTML5 standard. Adobe has been stalling the committee's work on HTML5. Google it. The reason is quite simple. HTML5 threatens Adobe's revenue stream from Flash. Agreed. Just like flash threatens Apple's revenue.
I'm not denying that PART of the reason why Apple does not allow Flash is to protect the App Store. But I've got news for you. That's business. And if you want to vilify Apple for protecting its cash cow, do the same for Adobe. That's what I was trying to say: flash won't come because Apple is trying to make profit, and that doesn't help with another competitor, like flash games - where the dev can put ads, where 30% doesn't go to Apple.
Look at it this way. The web experience is a large part of what the user does with a smartphone. Most content is in Flash, a technology fully owned by Adobe. According to Apple, Adobe has a history of treating Apple like a second-class citizen. If you were in Apple's position, would you want to expose yourself to that possibility once again with something as crucial as the web? Also, Apple told Adobe that it would stop blocking Flash when Adobe could show them a version of Flash up to scratch. I think that what Adobe wants is for Apple to not block Flash in the interim while Adobe comes up with a good solution. I think that Apple want less competition: music, movies and games. Developers don't need to update their sites to work with the iPad, it already works if it had flash.
I agree that HTML5 needs work, but it has progressed quite a bit. A lot of that can be attributed to Apple's stance on Flash. It could go faster if they implemented the full HTML5 on the iPad, at least. For example, in 4.1 you could enable HTML5 version of (full) YouTube, and view almost everything - highest rated comments etc. However, now, you can only use the mobile, not the desktop (with YouTube's HTML5 beta activated). Safari for iPad doesn't have all of HTML5's features, that the desktop Safari does. If they re-create Safari for iPad to support all of HTML5 features, then current HTML5 sites will work -- not the ones specifically made for iPhone.Content providers don't want to lose the readership of iOS users. It needs to progress some more, but Apple allowing Flash is not going to help things at all. Why would content providers waste their energy on HTML5 when they already have content in Flash? HTML5 versions of sites don't have the same full features that flash versions have - look at YouTube, for instance: no music videos on the HTML5 version, annotations are disabled, and videos with permanent ads are blocked.
Also, a lot of people on this forum are saying it's nice to have the "choice" to use Flash if they want to. You have a choice. Buy another phone I have iSwifter for the occasional flash; what I'm trying to say is Steve (notice Steve, not Apple) will never implement flash - even if it become sreally efficient.