It is the talk of Silicon Valley. The Flash smack down by the usually reserved Steve Jobs. The return strikes from Adobe, which didn't really accomplish much, except make it look very obvious that the two companies are not talking.
It seems that Adobe's Kevin Lynch never really talked to Steve and it was naive to think that Apple would ever give up control of its user interface for the iPhone, iTouch or iPad. That was really one of the big issues. Flash could enable a common user interface across all mobile devices. Ah but that is when the chess match gets interesting.
It is also a fight about money. Adobe sells tools that allow the creation of Flash and it has a great business. Apple makes money too and you can argue with their tactics, but you can't argue with the success of the iPhone or the App Store. I don't see too many developers complaining about the App Store model, as many are now rich beyond their wildest dreams.
HTML 5 and H.264 are here. Argue as much as you want, but the numbers on H.264 are real. I was surprised by the uptake, but it is clear that it is already game, set, match for H.264.