Meh, it's a good thing. Flash is terrible. I hate it with a passion. Adobe is behaving like a spoilt child now. If Apple doesn't want to implement flash support on their devices then they don't have to.
Adobe make their money from selling developer tools. If html 5 could provide their customers everything they needed, they would dump the flash plugin. Their man in charge has said this already.
I am not an IPhone fan boy, but I do work embedded devices. We work with a major CPU vendor, who might have a CPU capable of running Flash Lite sometime in the future. These guys are a major partner on Flash Lite yet their mid ranged CPUs can't even run the trimmed down Flash Lite.
Flash type animations will eventually come to embedded devices like cell phones. But right now the IPhone's attitude is to be eleitest. Customers pay for apps on the apple store because they work, are responsive and don't eat the battery.
If you want a phone that is more open, and ins't over sensitive saving cpu cycles, then buy an Android phone. People buy an IPhone because it works well, and if it can't do something well, it doesn't try.
Its the same reason Steve kicked Java off the IPhone... Java apps also eat resources compared to native apps.