Problem is, when it comes to such things as websites that are flash crazy, ur 3g iphone suddenly turns into a beer mat cos of all the shizzle content that needs downloading b4 the site can be actioned.
There are a bunch of guides out there for getting flash to install on the iproducts, I really don't know where the 'hacker' people here and spouting about, but u do need to watch what u run or u get the above.
Apps are one thing.
Apple/Jobs are correct that the coding or method is pretty arsey atm. Have to be fair, many pcs that have little more than Arm cpus in them, and a similar amount of memory, will have issues with flash. Add to that a poor adsl or even 3g to emulate what an iphone can do and u'd appreciate Apple's not wanting it to be on there as standard.
Adobe coming up with a specific version that cuts or disgards a load of the downloaded crap is probably the better approach, and I think that's been in beta for a while.