Cupertino are being disingenuous about the flaws of flash player and their premature adoption of an unformed and immature standard, HTML5.
One day HTML5 may be able to do all of the lovely things that flash does so well for us. Primarily allowing us to develop applications and content across platforms and channels without massive development costs of deploying those applications in completely different languages for multitple operating systems and devices
Right now it's just a standard it has only been partly adopted, by some apple browsers. It's not fully supported because it's not fully defined. http://www.w3.org/TR/html5/
This is because of disagreement between the major stakeholders in deciding, for example, what video standard should be used in HTML5, guess what Apple want to use H264. So basically HTML5 just isn't ready yet.
Jobs is behaving like a spoilt child, he wants the shiny spaceship in the toy store, yet he wants one life size and fully functioning. It just doesn't exist. At the same time his tantrums are impeding the build of the spaceship.
Adobe have made serious errors with Flash, primarily releasing updates with security holes, memory leaks etc but Apple have also. It's the world we live in. Jobs doesn't seem to able to accept that. If Jobs would allow flash into the iPhone and iPad developing applications would become even cheaper and easier for everyone. Even Apple.