Ok, so for a bunch of (presumably) intelligent people, I feel like the vast majority are missing the major issue here, which is that no technology (aside from explicit mal-ware) should be explicitly "barred" from the internet.
I'll also add that, while I am an avid mac user, and haven't owned a windows PC in quite some time, I am currently boycotting the iPhone and iPad BECAUSE they don't allow the same types of freedoms that Android phones are very quickly beginning to support.
I'm a developer by trade, and I use all sorts of different technologies including java, php, html, css, javascript, AND flash...all depending on the individual client's needs and desires.
Take a look at an EPK site for a movie, for instance this one that I worked on a few years ago:
http://www.sonypictures.com/movies/perfectstranger/site/flash.html
skip the intro and enter the actual experience, and you'll be able to move around an interactive apartment in 3d, as well as interact more closely with different areas within...this IN ADDITION to a photo gallery, video preview, synopsis, etc...
Now tell me how you can implement this type of functionality or ANY pie-in-the-sky functionality (because movie studios want what they want) using html, even html5. Now what if you only have 3-4 weeks to do it?
Despite all it's problems, Flash is inherently flexible, and can create rich interactive user experiences that are rivaled by very few online content delivery platforms, and it's extremely unfortunate that Apple has started such a firestorm about whether and why it is an unnecessary technology.
Standard sites can be built perfectly fine using standard technologies, but Flash is instrumental in pushing the boundaries of what the web can offer, a fact I think which is important to remember.
I'm saying kudos to Google for their efforts to support ALL that the web has to offer, not limiting their own user-base based on what THEY think is "acceptable" technology.
As for Apple, I can't be the only person they've alienated with their tactics in this matter. A large amount of their user-base is made up of professional developers and people in online entertainment...and a large number of these use Flash as a medium. Go ahead Steve, shoot yourself in the foot by alienating a percentage of your customers...even if it's a small percentage, it's still YOUR bottom line.