Regarding Flash: I see his point, and he's right, half the time Safari crashes it's because of a Flash plugin. Though, to be fair, I'm not sure if that's Flash's fault, or Safari's...
The refusal to adopt Flash on the iPhone and now the iPad is obviously his attempt to kill it. Remember when the iMac was the first mainstream computer to ship with NO floppy drive at all? I remember how crazy and restrictive that seemed to everyone, but it turned out to be a prophetic move (and it could well have been a self-fulfilling prophecy, as it were).
I think the keynote demo that plainly and obviously featured a broken Flash plugin was definitely intentional and not an "oops" by Steve -- these things are rehearsed so carefully, and he did it twice. The recent update of the iPad video to include the broken plugin seems like an unusual move, until you realize that Apple is sending a message. "See this, guys? We are NOT going to support this, so you guys out there had better just get used to it. Content creators, you'd better find something else or you will alienate millions of iPhone/iPad users." It's ballsy, but it will likely work -- in the interest of reaching as many of their audience as possible, website creators will start looking at other options.
Remember that when most people visit XYZ company and see the broken plugin, they're not going to think "Darned Apple, not supporting Flash plugins", they're going to think "Darned XYZ company, their website is broken." Regardless, whoever they blame for it, if the Flash object was a functional part of the website, then this customer is stuck and won't be able to browse or buy or whatever. That's going to be XYZ's loss, and they're going to want to do something about it.
As for the comment about Blu-Ray... I don't get it. Tons of people have Blu-Ray players or PS3's. They're as cheap as DVD's now. What more do you want, Steve?!