No, you don't want flash - you want streaming video and interactive games. There are ways to do this other than flash (until such time as Adobe fix their issues) - don't mistake a delivery method for the only means of displaying interactive content. Being The ubiquitous 'standard' does not mean this is the only, or the best way.
Microsoft windows is a ubiquitous 'standard' - I'm guessing most of you choose an alternative, or you wouldn't be here debating this issue so passionately. The dominant technology is not the one to which we must pander, we must constantly push to make it better. Flash sucks - not what flash can do, that's incredible, but the plug-in is a mess. It's proprietary, only the owner can take responsibility.
Move forward, develop. There are no boundaries, other than those we set ourselves.
Wrong. I want Flash because Flash content is already there. I'm all for Apple and others scrapping Flash once web replaces it with something better, but until that happens Flash is standard, and I want it.
If I have to sacrifice couple of years of full web experience just to help Apple kill Flash - no thanks. I'm not paid to be antiFlash revolution flag bearer.
Proprietary? C'mon. iPhone syncing with computer through iTunes is proprietary. I'm not complaining (much!) as long as it does what I require from it. Whole IT industry is full of proprietary. If it works fine for my needs, I don't mind. If not, I'd grow beard and do Linux only.
Additionally, as it was mentioned before - Flash exclusion from iPhone/iPod/iPad could easily be attempt to kill access to free Flash games and apps, favouring Application Store. I am far from convinced that publishing of great Flash plug-in would open iDevices to Flash.