Apple is correct. Flash is a proprietary software product owned solely by Adobe and it is not free. Why even bother to use it on web sites? We should all petition to all Web Site developers to start using open standard tools for video.
All the Video available on web is also available in open H.264 standard and one should not need additional Flash layer to play it.
Flash has worse security record since 2005. Thus, Flash is less reliable and affects phone performance because it is an additional software layer to play videos.
All multimedia chips have a decoder called H.264 (open source) and hence they are able to decode video in chip itself. Whereas, Flash uses a older standard that needed software decoder. Flash software decoder needs more battery (twice). All websites need to re-encode their videos using H.264 for one time. Then there is no need for Flash.
Adobe wants App Developers to use Adobe for Mobile Devices. This forAces pp Developers to rely of tools and libraries from Adobe. The Developers can not take advantage of features and enhancements done by Phone OS.
Apple has created WebKit - a complete open-source HTML5 rendering engine. All Mobile OS use WebKit in their browsers. WebKit is completely Open and Free.
Please read more at:http://www.apple.com/hotnews/thoughts-on-flash/