Steve disliked Flash because it crashed small mobile devices and chewed system resources.
A few years later Adobe AGREED with this by discontinuing Flash on Android.
A few years later Adobe AGREED with this by discontinuing Flash on Android.
What reason do you suggest for them not latching onto that opportunity?
My only guess would be based on "The Innovator's Dilemma", at least roughly... so acknowledging the disruptiveness of HTML5 would imply refocusing their priorities in a mid/long-term strategic move: maybe rethinking how Flash should be used (i.e. game creation platform instead of RIAs) and buying startups involved in the disruption.
More a sane, opportunistic move for the business, rather than a judgement over the objective quality of a product.