Uhm, so Apple is in a pissing match with both Adobe and Google.... Great....
As to Flash, sorry, but only a retard would purchase a web-browsing product without Flash support. I don't care whose fault it is - if Apple is the only company out there without Flash support, it's Apple's problem.
And really, it's all hogwash for the stupid, to deflect from the real reason, which is that Apple doesn't want to lose App Store revenue.
HTML 5 is fine, but it doesn't do much that Flash does, and it's nowhere near the 100% adoption rate of Flash. Most likely, even when HTML is more widely adopted, Flash will still be there for more complex tasks (Flash is not only video and ads, you know).
To be honest, by locking out Flash content, Jobs is making sure that his claim, that Google wants to kill the iPhone, will come to be. With full Flash support, Android will have a big stick to beat on Apple with. I guess the iPhone may survive it, but the iPad is dead in the water with Flash, IMO.