With Wallaby, Adobe is clearly readying itself for a “post-Flash” era that may be ushered in with the “post-PC” era. The number of devices which either have no Flash capability or only weak support will only grow, and Adobe doesn’t want to be cut out of the market completely. Adobe targets iOS with Wallaby Flash-to-HTML5 converter
The browser is miserable, at least when Flash is enabled. It goes catatonic, scrolling is laggy, and it can get laughably bad. When better browsing is half the reason to go for a larger screen, that’s insanity.

Samsung Galaxy Tab Review: A Pocketable Train Wreck

Why do people want Flash on these devices again?

The bottom line is that those of us who attended FlashCamp got a demo of Flash running on an Android phone, indeed — and it wasn’t impressive. We never saw an example of a site that worked without crashing under this beta version of Android.

Jeff Croft

(People have been complaining that the iPhone does not support Flash for years now, and yet no other phone has support for it yet either.)

The future of the web is HTML5.

Dean Hachamovitch
General Manager, Internet Explorer 

IEBlog : HTML5 Video

Adobe needs to turn Flash into the webbook operating system of tomorrow, investing heavily in its performance and reliability and offering it as a framework solution to hardware vendors who use the Flash technology and tools to create a customized OS for their own touchscreen tablet devices, then in turn letting the existing installed base of Flash designers & Flash developers build apps for this new platform. No more “Windows 7 in a tablet form factor”; something that leverages web technologies as much as possible, as best as it can, and uses Flash for the things that web technologies can’t do. The Future of Flash, on FarukAt.eş
Seriously, this is the real deal — full-screen H.264 playback with no Flash, no browser plugins, full iPhone OS support, and sane CPU usage, better in every single regard than any video player ever made with Flash. SublimeVideo - HTML5 Video Player (quote via Daring Fireball)
The real situation is that today, two and a half years after the iPhone debuted, web developers can no longer count on every viewer being able to render Flash. The percentage of web user agents with Flash installed is now going down, not up. My money says that trend is permanent, and further, it’ll reach a tipping point in the not-so-distant future and Flash will turn into something like Internet Explorer. — John Gruber
How would you use flash on an iPad or iPhone though? Anything Flash that requires the keyboard and the mouse at the same time wouldn’t work… Anything that uses arrow keys wouldn’t work… Hovering over controls for drop down menus on flash websites wouldn’t work… Enabling Flash wouldn’t do ***** all but enable ads, why exactly do we want this so bad? — One of the best arguments against flash on the iPhone/iPad yet (apart from the fact that flash is not a web standard, not open source, slow and buggy on the Mac and is fast becoming obselete)