Excellent read regarding Apple’s failure to support Flash on the iphone, ipod, and now the ipad.
http://www.guardian.co.uk/technology/blog/2010/feb/02/flash-plugin-browser-apple-adobe
To Summarize:
Adobe flash is a cpu hog on non-windows machines and thus causes browser instability. Apple would prefer to use H.264-encoded videos.
How if affects you:
If you want to continue to using flash on your website, add a browser redirection at the entrance.

