It's really pretty simple: Adobe doesn't want to make the investment necessary to make the Flash player efficient, stable, secure, and bloat-free. On the other hand, they want to keep making money selling the Flash development tools.
Excuse me, but.... huh?
I'm going to assume you haven't actually researched this (i.e. "I went to the source and got the full story for myself" research and not just "I read a Slashdot comment once and got angry" research) and are just running at the mouth because you're angry, not because you're right.
Which you aren't.
Here, let me introduce you to a guy. His name is Tinic Uro, and he's one of the people who actually programs Flash. He's an engineer like us, not a marketing droid (or worse, an executive).
Here are three blog entries you should fully familiarise yourself with before making any further comment on what Adobe is doing in terms of improving Flash on OS X.
Flash 10.1 and Core Animation:
http://blog.kaourantin.net/?p=81
(TL;DR: yes, Flash 10.1 uses Core Animation to accelerate overall Flash graphics performance -- not video specifically -- but you need OS X Snow Leopard and a super-new version of Safari)
Flash 10.1 and timing:
http://blog.kaourantin.net/?p=82
i>(TL;DR: They rebuilt the timer model in Flash 10.1 to use significantly less memory, however Safari on OS X is less flexible than other browsers when it comes to firing timer events, thus making video playback less smooth)
H.264 hardware acceleration in OS X:
http://blog.kaourantin.net/?p=89
(TL;DR: Adobe has released a post-10.1 beta version of Flash that supports full and proper video H.264 acceleration on Mac OS X, with the caveat that you have to have 10.6.3 and certain current graphics chips)
The real story is this:
Apple has been well behind Microsoft Windows when it comes to providing third parties with APIs to do hardware acceleration, and to do high-performing timer operations that are necessary to run browser plugins smoothly. I know the Slashdotterie will get all worked up over that assertion, but speaking as someone who's actually written browser plugin code, you'll just have to trust me on this. IE has always had the best timer support, which is one reason why video- or timeline-heavy plugins have always performed better than other platforms. As of OS X 10.6.3 and Safari 5, Apple has pretty much caught up.
- Despite the headline-grabbing statements from Steve Jobs and other executive-types, there are actual hard-working developers at Apple and Adobe who actually collaborated to define a good API for high-performance video access for browser plugins. If Apple wasn't so deliriously secretive, you'd hear a lot more about it. Trouble is.... the only people who are allowed to blog at Apple are people who'll make the company look good and forward-thinking -- like the Webkit team.
The problem with performance isn't 100% Adobe's fault. It can't be. Adobe's engineers aren't stupid -- if there had been an easy solution to good plugin video performance on the Mac all this time, they would've fixed it years ago. Why spend several years intentionally using a bad approach?
Lastly.... despite what the article summary says here on Slashdot, overall Flash performance is quite a bit better in 10.1, especially on OS X. Do your own benchmarking; you'll see for yourself. It's still not as good as it should be, but it's a massive step forward. They know HTML5 is coming... they know they have to make Flash as good as or better than HTML5 or they'll be toast by 2020. They know all this.