Overrated. When FF extensions became popular everyone and their mom was talking about FlashBlock and NoScript and eliminating flash.
Choice is nice, but it's not that big of a deal to me when it comes to flash. Half the time a mobile version of the site is better anyway because its easier to navigate and browse. Tons of sites that I read daily like AT, ATOT, any forum for that matter, Engadget, CNN, etc don't have flash.
So yes, it is a matter of videos and stuff, and quite honestly, do I really want to watch an episode of my favorite TV show on my phone? Maybe if I'm on a 1 hr subway ride, but I don't do that. PMPs to me have a purpose in long commutes or travel times. It's not a big issue for me because I drive, and if I'm really that bored in the office, I can play games on my phone. I've always said that watching HD videos on a tiny 4.3" screen at best is just overrated. I'd rather sit in a comfortable chair and at least enjoy it on my computer, if not a big screen TV. Even my laptop would be a better viewing experience. Sure you can argue that's not available all the time, but am I that desperate to sacrifice viewing experience to watch it on a phone? After all there should be other things to do on a phone like games, etc etc.
I know you love bashing on Apple for not giving consumers a choice, but Android isn't all about choice either. I mean take multitasking. If you wanted choice you would go with S60 or WebOS for true full blown multitasking. You get to choose what you open, what you close, etc etc. Not some OS telling you what it wants to keep in memory, what it chooses to close off on its own, etc. In fact in its current state iOS 4 is quite like Android in terms of task management. Also, Froyo hasn't really brought any improvements in push notifications as the only thing that uses push is Google Voice or Gmail.
Anyway, I'm getting off topic but seriously... i think most people admit that flash is a dying breed. There's no suitable replacement yet because we'd need widespread adoption, but quite honestly flash support isn't the biggest issue right now. In fact, as someone stuck on Android 2.1, I'd rather see the OS cleaned up before I get Flash support.