Apple will have to justify why they're keeping Flash off the iPhoneI wouldn't be so sure of that. What is Flash really used for?
Video? The iPhone already plays back h.264, the format used for high-quality Flash streaming. Most of the major video sites either serve up iPhone-tailored versions which stream the video directly (e.g. http://iphone.dailymotion.com) or have native applications that do the same (e.g. the YouTube app that the iPhone has had from the start). The result is better performance, better battery life, better quality and better overall experience, all without using Flash.
Games? The iPhone has no shortage of games, and with Flash CS5, the same games can be deployed as native applications, where they will undoubtedly perform better. Many Flash games designed for desktops aren't very playable on a smartphone anyway.
Aside from those, the most commonly-encountered uses of Flash are obnoxious animations and sites built entirely in Flash, neither of which would seem to inspire demand. What's left?
This isn't to say that Flash adds nothing, only that it seem like such an obvious necessity as it does in a desktop browser.