Adobe have officially announced that Flash is definately NOT coming to the iPhone and iPod Touch. However, as they state in the message above, it is not their fault. It’s Apple’s.
Apple restricts use of technologies required by products like Flash Player. Until Apple eliminates these restrictions, Adobe cannot provide Flash Player for the iPhone or iPod Touch.
In other words, Abode are fully keen and seems to have the means to put Flash on the iPhone and iPod Touch browser but because of Apple’s mega-strict restrictions, they are not allowed to release it.
