Apple could simply require that any iPhone application in normal use must not use more than so many mW of power. Easy to verify, and if Adobe's Flash doesn't meet the requirement, back to the drawing board it goes.
As it stands, Flash is banned regardless of how optimized it is. I'm sure if Adobe releases an app called "Flash" that does nothing and exits immediately it would be still banned, just on the basis of its name. On the other hand, if I put together a Tetris game that has twenty infinite loops in twenty threads (do they have threads?) and burns power like crazy, that would be just peachy with Apple.
If you haven't had a freeze and had to restart a smartphone, you are one lucky individual.
I restart my PDA maybe twice per year, and not because it locks up (it never does) but because its Bluetooth stack has a known licensing bug. There is a fix from Dell, but I never bothered to apply it. My phone (LG CU515) never locks up.
Look through iPhone threads and start counting how many people say they are getting one the day it is on Verizon.
It may be that Apple shot itself in the foot when they signed the exclusive deal with AT&T, I think it will expire only in 2012. Android will have plenty of chances to prove itself. Many people use Verizon because of its superior coverage. In several [rural] locations AT&T phone had no coverage, but Verizon phones worked fine.