Yeah, I'd like to introduce the OP to this little thing out here that we have called "the internet".
You see on "the internet" the VAST MAJORITY of websites that use flash would not (by any sane or right-minded person) be classified as "drop-dead gorgeous". In fact many of them are aberrations of nature.
Flash has become a way for ignorant web designers lead by even more ignorant managers to design glittery and flashy (no pun intended) websites that focus on dazzling the user instead of usable and content-filled designs. Poor Jakob Nielsen probably cries himself to sleep every night.
Yes there are a few solitary websites out there that do use flash productively and do things that genuinely can be justified as a valued-added usage of flash that could not have been provided in plain HTML, but those are far and few between.
So what this sensationalist article is really spouting is that there are yet no good development tools for HTML5. Wow Really? So a product that just came out (relatively speaking) doesn't have as good or as many design tools yet as a product that has been around for a 14 years. Good thing you pointed that out!
Once the HTML5 tools are available and it's as easy to develop "drop-dead gorgeous" (for better or worse) websites for HTML5 as it is for Flash I think that Adobe is going to have trouble justifying Flash's existence ESPECIALLY because some of those utilities are going to be open-source and free.