The Wall Street Journal is postulating on a behind the scenes Apple - Adobe skirmish about putting Flash in the iPhone. I think the argument can be summed up with a sentense:
Who will control video on the mobile web?
Need evidence? If Apple was planning on releasing Flash on the iPhone, why would Youtube be converting their library to H.264? Yes the quality is better but not that much better than Flash. Every Youtube video put on the web is effectively a interface for a Flash interfaced mobile video platform.
Furthermore, (although likely a red herring) even the lighter versions of Flash tax the processor and by extention the battery life of a device - which provide a convenient excuse for Apple to say it wants to stay of
