The reason the Apple world does not play with Flash is entirely a financial one. Apple Inc. (Not Steve Jobs!) is determined, as is their right, to maximise revenue from all areas. Allowing Flash into the Ipad/Iphone world would allow others to benefit financially from offering an 'app like' experience on flash enabled websites with none of the revenue generated going to Apple.
They take 30% of all sales from the Itunes Store, so a website allowing users to get rich functionality that bypassed that would hit Apples bank account, it's not a conspiracy, just a business's desire to maximise profits. I just wish they were honest about their reasons for this position.