Robin, are we not confusing "Flash, the movie player" with "Flash, the application platform"?
Don't get me wrong - I'm not a huge Flash fan, but Flash is much more than just a movie player. Flash is quite capable of using whatever codecs that everyone decides on. So this endorsement of H.264 and HTML5 really means that people who just want to play movies no longer need to involve Flash. This is a nice thing, but doesn't really affect Flash much.
What Apple hates (and MS has no opinion on) is the cross-platform application generation. I think their concern is that a cross-platform tool would produce substandard applications. Although I'm actually okay with Apple's control-freakishness, in this case I think they've gone too far. They already have controls in place for applications submitted to the AppStore. So let people use whatever tools you want! The market will decide.
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