Just to add to the Flash debate, recently bought a PC as a media centre very cheaply without an OS. Installed Linux (Ubuntu) and soon discovered that Flash support is so poor for Linux that it struggled to stream even low res youtube vids, but played 1080p vids fullscreen no probs.
Delved a little deeper, chatted to a programmer at work, looked on Linux forums looking for a fix and it seems its unavoidable. It's poorly programmed cack apparently. Adobe refuse to release the source code so friendly open source programmers can fix scaling problems etc. etc.
From what I know, Jobs refuses to use Flash because he thinks the programmers are lazy, it's so processor intensive that the iphones battery would only last minutes anyway.
Iphone doesn't not run flash because the Iphone is cack, it doesn't run it because flash it utter crap.
Only just had this problem recently otherwise I wouldn't have bothered to contribute. It's annoyed me tbh. Bring on silverlight and BBC et al. adopting it.
P.S. Installed win7 instead now, flash runs better but it still ain't great. Booooo!