You can argue that - and from a design point of view, I won't completely disagree (I do cringe at some high level sites that are designed purely in Flash) - but flash is not an archaic standard - it continues to evolve and with each innovation, it's uses become more and more intertwined with the rest of the net. Holding the belief that flash is slow, sucks up CPU and GPU power and is unnecessary is really the more 1990s windows thing - at least in my humble opinion. Just because Java hasn't evolved to the point where it can exist without taking up a jillion resources (which is what I call true bloathware) doesn't mean Flash hasn't gone above and beyond some of its earlier deficits. As an application it is so much more than just animated menus and roll-over effects...
Boom!
I agree.
Cringe worthy sites are down to crappy designers/developers, whatever the platform they're developing for. I do, however, think it's considerably easier to design cringe worthy sites in Flash. As there are many barriers to creating good sites in Flash (really requiring solid working knowledge of multiple technologies, not just Actionscript, other programs etc) and there's a whoooole lot of freedom. Put anything anywhere you want! Oh but please not there! And making light weight snappy sites in Flash requires advanced knowledge and nothing less. But the fact is; it gets done. Brilliantly by many, many, many awesome Flash developers out there.
Flash is also absolutely flying in terms of progression. Actionscript 1.0 to 2.0 to 3.0 were all huge leaps for the language. And less than a couple of years between each. Going from pretty much bits of scripts to add to animations (1.0) to supporting full object orientated programming (2.0) to a full blown object orientated language (3.0).