I will start off by saying I love my iPad, but for many users no Flash/Silverlight support is a hard pill to swallow. I know most complain about the Flash, but I wish it had silverlight as well. People who are enrolled in things like online college courses quite often need support for Flash or Silverlight and the iPad (which seems like it could be a great platform for students) can't run either.
There are tons of other things Flash and Silverlight are used for, and just like all the proponents of alternate browsers like Safari, Firefox and Chrome (what I use on my PC) who claim IE sucks, iPad users are only kidding themselves if they say ignoring the commonly used industry standards are no big deal.
Most Web sites are written to function correctly with IE, and Firefox, Safari and Chrome have to build that compatibility in. If Apple continues to keep Flash and Silverlight at bay, it may not kill them, but it will definitely affect sales. It's folley to think it won't. If Flash is buggy so what, leave it to the user to decide if they want it. I don't need Apple to protect me from myself anymore than I need the government to.