I find it ironic Steve Jobs labelled Flash "closed an proprietary" while at the same time announcing he is closing off the languages allowed on his proprietary device.
The iPad and iPhone market share is relatively small. I'm sure this annoys Adobe, but I can't see this being enough to stop Flash. Now if Google took a scunner to Flash that would be a differernt story...
He is trying to kill Flash but I think he will fail.
Right now more than 90% of the video in internet are Flash and even if Apple is pushing the HTML5 video player I think they will support flash soon or later.
Google Android is supporting the Flash player 10.1 on both mobile and the next coming tablet and in USA Andorid is becoming very popular.
I'm an Iphone user since his first launch 3 years ago ( I cued the first day at the London apple store to have it!) but Since when Apple decided to change the rules again blocking all cross compiler application such as Flash CS5 I have to say the I was a little bit pissed off and ended up buying and Android phone planning to sell my Iphone.
Probably like me there are many other people with the same feelings even if I still love Apple; at the time of writing I didn't sell the Iphone yet ( an probably I won't) and trying to use both phones just to have a comparison and test my games.
I bought also an Ipad and have to say that is a great tool, but is Google comes out with a similar tool that support Flash, Java and has a USB port probably I'll move to that one.
So I think that Apple will support soon or later Flash otherwise they risk to lose market.