Read the summary, you say? Okaaay:
While the HTML5 and Flash standard debate rages, Apple, a major promoter of HTML5, has allowed its iOS devices to run Flash videos.
The device does not 'run' Flash videos - it renders HTML5 video served up over the web just like a bajillion other apps.
Apple has given approval to an app developed by Skyfire that translates Flash code into HTML5.
That would make the app an interpreter, which would be (a) highly impractical, (b) grounds for rejection by Apple and (c) irrelevant to the task of playing video. It's not the app but an external server that transcodes the video-stream, which is in any case not the same as "translating Flash code".
[...] the Skyfire app downloads the Flash video on Skyfire's server [...]
The app does not download the Flash video; it visits a website that downloads and transcodes the requested video. The app downloads only HTML5 video.
The app is embedded in the Safari browser.
That would make the app a browser plugin, which is very unlikely. Presumably the reverse is true (a Safari control embedded in the app).
Seems to me that the GP is both correct and on-topic, whereas the summary that you recommend reading is...questionable.