I use Flash regularly on Youtube, Hulu online gaming, etc. You can always block Flash ads.
I don't see how Flash gets in the way of Youtube or Zynga games, for example. Seem to work fine. If I feel some Flash app gets in the way of my web experience, I can always block it individually, and get it out of the way. But if on an iPhone, lack of Flash gets in the way of my web experience when I WANT to use a Flash app, there is nothing I can do, because Apple took that decision out of my hands.
I agree that Flash 10.1 with hardware acceleration is key to this whole equation, Google and others are working to integrate Flash into their platforms, they can do battery life calculations just like Apple, and obviously they feel that it is something that Flash is on track to address, or they wouldn't be building it into their mobile platforms. Apple is not working to integrate it into their platform and they pissed Adobe off, so even if they were to change their mind at a later date, they are going to be behind the rest of the industry in Flash support. That is why I would not buy an Apple device.