While there’s a bit of Apple faithful in the writing, this article provides a good summary of the Flash on iPhone OS issues.
Adobe’s FUD numbers might be right, but video will fade away as HTML5 picks up & Flash-based games are a red herring when you look at the tens of thousands of free games in the App store.
Given how quickly mobile browsing is growing and the iPhone OS’s market share, Adobe has every reason to worry. Perhaps they should focus on Flash’s technical issues and convince Apple they can create software that’s responsible enough to run on iPhone OS.