I don't care if iAnything supports flash or not. They can ignore Flash, Silverlight, any other third party component other than the pure HTML. Steve might be right and has all the moral rights not to support them.
But banning anything originally written in Flash, MonoTouch or any other rapid or not rapid external "to Object-C compiler platform" should be out of reach of Mr. Jobs' jurisdiction. As long as it runs on the platform, it's none of his business.
Actually, he owns the platform (the App Store) and therefore it is very much his business. If you have beef with his policy for his platform, then you can jailbreak — otherwise, feel free to dislike his policies all you want, but you cannot disregard the fact that he's well within his right to enforce them.
Honestly, it's like telling a convenience store owner that he has no business refusing to sell M&M's in his establishment and that it furthermore makes him a big, old, bad guy(TM).
Anyone can supply him M&M's as long as they are in predefined colors and size, he refuses some of them by their taste. He is selling all the rest without any concern over the quality of M&M's. He was an ignorant middle-man for all other facts except taste.
Now, he starts banning some specific M&M's based on the production methods of them. No M&M consumer can tell the difference, all taste more or less the same way. Production does neither determine quality nor nutrition facts of M&M's.
But banning anything originally written in Flash, MonoTouch or any other rapid or not rapid external "to Object-C compiler platform" should be out of reach of Mr. Jobs' jurisdiction. As long as it runs on the platform, it's none of his business.