While Adobe is going to bear the brunt of this, this looks like a calculated move against Android as well. By precluding things like PhoneGap (if it turns out that it's "an intermediary translation or compatibility layer"), they're forcing developers that can only afford to write an application once to choose one platform. Right now, iPhone is the easy choice for a lot of developers, just based on market.

The end result being fewer apps for Android and a less vibrant software ecosystem.