Steve wrote a letter that gives a really thorough rundown of his issues with Flash.
I think Betanews misses some of the subtleties in what Steve is saying, but I essentially agree with their breakdown as well as many of the comments that follow. Steve is basically serenading us with a familiar - and deceptive - tune. It doesn't surprise me that Steve is being a bit misleading and deceptive; I expect it. But I have to wonder, if Adobe addressed most of these questions, would that change Steve's mind? I doubt it.
The real question for me is whether he's right, in the end. Whether not having Flash in the iDevices is better overall. Not just from a product sales and success standpoint, but from a practical perspective. Of course we'll probably never know what would happen if Flash were available in the iWhatever, at least not until and unless Flash actually wins, or evolves into something even more compelling that they decide to allow.
What we will see though is a competing platform with rapidly growing strength having a complete implementation of Flash, fairly soon. And as that platform matures and becomes a better and better direct competitor for Flash - and it will - then we'll be more and more able to directly compare the perceptions, reception, enjoyment, use, market share, etc. of these platforms, and hopefully determine to some degree the impact of Flash in that mix. Yes, I think Android will really tell us if Apple is making the right decision.
Update: Good old Joe Wilcox weighs in, and I sort of agree with him for once: