If they want to take on the handheld pc market, they have to get over the fact that Flash opens the door to other app development tools. Sandbox it, do whatever it takes, get Flash on the iTouch. Otherwise IMO it's still a glorified iPod, not a serious competitor in the handheld pc space. I love my iTouch, but would not want to upgrade to one with a 7" screen if it's deliberately crippled from most web content like the current iTouch is.

I've had it running on my Moto Q for several months. Buggy but usable. Better than the Internet Explorer that comes with Win Mobile 5.