To say Flash is proprietary, possibly poorly executed format is a fair thing to say. To say it is completely without merit and has no place is a fallacy. HTML5 video is widely supported today. Flash might be a delivery vehicle for another unrealized idea tomorrow.
And the "death to the plugin arch" circle-jerk logic is almost intolerable. Only create within the confines of the parent layer's imaginative capacity? Sounds more closed than SWF.
kevinh said it best: http://news.ycombinator.com/item?id=1305322
Support to my assertions: http://news.ycombinator.com/item?id=1304353
But the fact that the main use for Flash on the web these days, beside video and unusable websites, are animated flash ads that use up 40% of my much more powerful Macbook Pro's CPU time means I'm in no hurry to have flash on the phone, openness dogma be damned. When Jobs limits my general purpose computers, I'll be angry, but until then, I'm glad he's making the tough design decisions instead of just letting the device be a free for all.
In my opinion, this is moot point. Annoying ads aren't going to be limited to Flash. HTML5 ads aren't going to be more fun.
Who says they'll progress at the same rate? That's ridiculous. Flash is at least 10 years old and has been in extremely heavy use, so it's likely plateaued in terms of performance on most platforms. Canvas (and the rendering engines for it) are very new by comparison.
The argument just suffers from the fallacy of composition. The standoff motif is getting old. We're talking about software, not cold war against another country.
Apple doesn't want you to notice Steve behind the curtain. With Adobe we tend to pick and choose what we agree with and ignore the points that don't support our bias.