If they can't get Flash working on a 4 Core Mac Pro without it heating-up and turning the fans into wind turbine....
...perhaps they might struggle a bit to get it working on a cellphone handset.
The clear story here is that Flash only works well on mobile, if the Flash content has been specifically re-authored for mobile platforms.
I think highly technical people will quickly recognise old flash sites and avoid them, but less technical people will just encounter problems and frustration.
So web sites that actually care about attracting a mobile audience still need to re-build their content for mobile. And given that they will reach the biggest audience by avoiding Flash, it's a no brainer. Trash the Flash.
C.