Apple's real concern: access to content (Score 1)

Web content > proprietary non-Apple software component > Apple device

Apple does not want to let a single third party control Apple's ability to access web content, and thus perhaps dictate terms for access to that content. To access Flash content currently requires a proprietary software component from Adobe, giving Adobe substantial power to dictate terms for accessing this content. Even if Flash were made an open standard, it would require substantial resources and time for Apple to create its own Flash renderer. Why not simply put that effort into HTML5 rendering and authoring tools? Apple is gambling that the iphone and ipad currently give it the leverage to move the web ecosystem away from proprietary Flash and towards HTML5, a standard over which it and other parties have some control.

Adobe could produce a fantastically efficient, bug-free Flash plugin that exposed all the nifty features of the latest iphone OS and Apple still wouldn't want to use it.