It's easy to bash the Flash-bashers as being elitist, but that just completely ignores all of the points we raise in why we think mobile devices and flash just don't mix, and why HTML5 (and CSS3, and JS5 when it's released) are the future, especially on mobile devices.
Flash Player is bloated and resource hungry
Flash Player is a dog and the current crop of mobile devices just don't have the processing power or battery life to support it. The only way it's getting onto the iPhone is if it's included as standard in Mobile Safari, and that would be disastrous for performance. Plus, we can all do without those annoying ads.
These days it is the equivalent of ActiveX and Java Applets: annoying, big, and slow. The browser is already acting as an interpreter of one technology that's quite capable of producing dynamic content, so there's no real need to include a second interpreter on top of that.
It's not touch-friendly
And it certainly has no ability to deal with multi-touch interfaces. This is not Apple's responsibility, it's Adobe's. So until Adobe develops Flash in way that is specifically designed to deal with peripheral-less devices, it has no place demanding support for those devices.
Animation != Web technolgy
The OP asks if we can produce animated features like Quads or Drawn together. Well, we probably could, with the right IDE and frameworks. But there is no reason why you couldn't animate in Flash then export to a (relatively) open format like H.264. You don't watch Drawn together straight in your Flash Player from the SWF file, it's converted to a video first and then Flash Player is used to play that file. Something which isn't necessary anymore.
Apple's interface guidelines are thrown out the window
We use Macs because Apple has spent as shit-load more money than any other company in perfecting it's user interface. We use iPhones because Apple has extended that desktop aesthetic to a mobile device. The Flash IDE does not incorporate any of the UI guidelines that Apple builds into it's own IDE (XCode), throwing away decades of usability research.
If you start building apps in Flash and exporting them the iPhone, you're destroying an essential part of why many of us use the platform: consistency, usability, and aesthetics.
Flash will not have access to the core of the system
Apple protects many of the iPhone core from being accessed by 3rd-party software. This is to protect users. Adobe will not have a plugin approved if it will let just any random SWF on the web have access to the core.
Unless Adobe is willing to spend the time and money writing Flash Player from scratch using Apple's frameworks and within the restrictions of those frameworks, they won't get Flash on the iPhone.
HTML5 (with Canvas) + CSS3 + SVG + JS = Standards
Standards are the best way for the web to progress. Until Firefox came along with standards compliance, the web was stagnant, stuck with buggy and slow IE6. IE6 is the only reason Flash got so big, because it was the only way to do anything dynamic or out-of-the box: animation, page transitioning, non-grid layouts, etc.
But that's not the case anymore. Now, we can do dynamic right in the browser, without needing proprietary plugin's adding a level of abstraction that doesn't need to exist. CSS3 will (and in some cases already does) provide for a level of graphic control that could only be achieved with static images and Flash (rounded corners, shadows, gradients, etc.). SVG allows for vector graphics. HTML5 allows for video and animation. And
JS is the language that ties it all together.
Why should Apple support a proprietary format with all its inherent pitfalls when open source standards are already out there, waiting to be embraced?
Developers, developers, developers
ActionScript = JavaScript + a framework.
Both ActionScript and JavaScript are based on the ECMAScript standard. I know both of them pretty well, but AS has one advantage over
JS, and it's nothing to do with the language itself: the Flex framework behind it.
Developers will start producing frameworks for the new web technologies in the same way they've already produced the likes of jQuery and MooTools to make the current crop of dynamic web easier, and the way frameworks exist for server technologies.
Once these frameworks exist, churning out content will be faster.
Flash content !== Flash IDE
Most of the OPs piece refers to "Flash" as the program from Adobe that produces the content. Yes, the Flash IDE is quite powerful and it allows rapid development of animated vector content, even cartoons. But the IDE is not essential to the Flash content: you can create Flash content without even opening it, in pure code, and you can achieve amazing effects you could never do in the IDE alone.
Content is also not a set product of the IDE. If Adobe wanted, they could have Flash export to Silverlight, or HTML5 Canvas, or any other number of formats that support vector animation. You could still use the Flash IDE to produce HTML5 content ... if Adobe would let you. It could be just as powerful, just as dynamic, just as rich.
But again, the ball is in Adobe's court as to how they remain relevant.
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I suppose my point is that Flash content is old technology. It's popularity is a result of the old internet, where protectionism and lack of competition resulted in a decade of stagnation. Sure, it was great at the time — it was the bees' knees — and the IDE is still second to none.
But the advancement of web standards and innovation, of mobile technology, and of user education has resulted in an environment where users want an alternative, and developers are jumping ship. Flash is losing relevance, and Adobe is falling into the Microsoft Trap, a trap MS only just recently managed to escape.
Don't get me wrong, I used to love Flash. Half of my web-design portfolio is Flash-based websites. But familiarity is no reason to ignore emergent and (in my opinion) superior technologies.