I don't really see the point in not having Flash on the iPhone. The new iPhone 3Gs has a compass, how many people would actually use it? Flash on the other hand, is used daily by thousands, maybe even millions, there is a lot of sites that are streaming different films, clips and such. How hard could it be for someone or Apple, to make a small patch for the iPhone that installs the requirements for Flash use? Maybe even an app could do it, so people don't need to jailbreak/hack it.

Yours, Sallads.
