An Apple spokesman says Flash is "closed and proprietary" and that Apple supports other development tools that are "open and standard." But banning Flash also pushes customers to buy movies and TV shows from iTunes rather than watch them on a free Web site. It pushes developers to write apps that get distributed through Apple's App Store, rather than through a Web browser.
This is ridiculous. If you were using flash before to serve free content through a browser, you'll want to stick to the browser and just use the standards in question (HTML5 and H264) to serve free content to the iPlatform now. The user isn't forced into paying for otherwise free content, it'll just come down the pipes in a standard format, and Apple is the pressure forcing developers to use these standards. Look at all the companies who have been rolling out free, standards based (read: non-Flash based) video options like mad since the iPad was announced. To quote Steve:
YouTube, with an estimated 40% of the web’s video, shines in an app bundled on all Apple mobile devices, with the iPad offering perhaps the best YouTube discovery and viewing experience ever. Add to this video from Vimeo, Netflix, Facebook, ABC, CBS, CNN, MSNBC, Fox News, ESPN, NPR, Time, The New York Times, The Wall Street Journal, Sports Illustrated, People, National Geographic, and many, many others. iPhone, iPod and iPad users aren’t missing much video.