Why must you assign motive to how people interpret this exchange?
I think a reasonable person could look at the exchange and clearly see that there are two incompatible visions for mobile platforms. It just seems like there is a lot of feigned outrage over this issue.
At this point it should be pretty clear that the only way flash and other controversial things will appear on an Apple mobile platform is if the market demands this to be. If developers, consumers, pundits, companies, publishers, and competing platforms are so offended by the grave sins Jobs has committed against them - a better utilization of resources is to create a ubiquitous mobile standard that is based in flash or whatever else than to bitch about it.
Simply offer an alternative to Apple's platform and take advantage of Jobs' hubris for a second time. Looking at the mobile ecosystem now compared to 5 years ago, however, grants Jobs just a little bit of deference in knowing what he's doing.
On the porn issue, it seems Jobs is personally offended by pornography. There is also a very practical aspect of this thing too. Apple is a high-profile company and any story about pornography getting slipped into an app that someone's kid downloads is going to get about 1000x times the play of say google. I am sure they would rather not see the headlines: Apple - Porno iPod?
Final thought - questioning motives is just lame. Both sides have valid points and are most likely thinking in terms of good faith towards their users. People who find one side more convincing than the other just have differing opinions - in most cases it's not based on fidelity or enmity towards a particular company