you are right. The way Flash (the swf format only, not the whole platform) was written circa 2003, it wasn't optimized to go to mobile devices. There were some issues and technical hurdles to get around. Some of them were simple (like stopping FP instances that are not in the visible part of the screen) or simply reducing the frame rates of flash applications that are using battery power when they are not in focus). Some required much more thinking such as form fields receiving focus when the tab is hit from an HTML form element above a flash form element). To scale to mobile was a challenge which has been met with the Flash PLayer 10.1. The Google Nexus 1 phone (which I own) does a great job of running the full version of Flash (not Flash Lite). The FP 10.1 has *huge* technical improvements from previous versions
Adobe is full on excited about HTML 5 too. There are some really cool possibilities about using HTML 5 features side by side with Flash. Serge Jespers did a great job of showing this on his blog late last week:
The fact is that HTML being updated is not something everyone asked for, but in it's execution, there are some obvious features that I am glad to see such as the Video element. I do share some concerns about how more advanced API's get implemented (such as the document.evaluate(); API) for complex XSLT processing but hope the industry will figure it out.
" any technology can be used for good or for evil. The only question is how you decide to use your coding time in between " - Gandalf