The point they're making is that it's not a technical problem, but it violates Apple's fundamental strategy with the iPhone.

"Companies negotiate"... but does Jobs? What would Adobe have to put on the table to get Jobs to budge?

i agree. something as major as flash wouldn't be just another app in the app store, it's something that apple would bundle into the next firmware update and tout in their commercials. there is obviously some other reason for them not wanting it on the phone right now.