The Apple developers and techs I work with who go to all of the conferences say that there is some bad blood between the Adobe Flash developers and some of the more senior Apple people which is causing this. If they could ever get that worked out the iPhone would clearly be the dominant device.
Yeah... LOL...
I'm sure the "bad blood" is that the Adobe Flash team wants to hold to their ability to bypass the Apple iPhone store and be able to develop applications for the iPhone by way of Flash... :-)
The "bad blood" is that the Flash team realizes that Apple is not going to let them do that... LOL...