I don't buy it ... on my iPhone I only have apps that have been approved prior to this change of policy, and the battery is piss-poor already.
Having owned multiple lower-end Nokias + I currently also have one E71 + one N97 ... I kind of assumed the iPhone's battery can last for 2 days or even 3 if I'm only using it for phone calls.
Phones like the iPhone / Motorola Droid ... are too powerful for their own good. If I touch it in any way other than making simple phone calls, or if I'm activating 3G, it lasts less than 24 hours. When playing with it, then it doesn't last more than 3 hours.
So sorry, but I don't buy that Flash works wonderfully well, quite the contrary ... but as I said before, it's better to just let customers decide for themselves and good devs can probably create good apps even with Flash, and banning alternative frameworks makes no sens.
The other argument was that it's better for apps to use native UI elements, instead of dropping to a common denominator. Personally I get annoyed when an iPhone app doesn't have standard behavior when interacting with it, and it's a lot more annoying than on a desktop because of the small screen real-estate ... so that demo of the Flash app that ran without changes on iPhone / Android wasn't very flattering.
using html 5 on your ipad ??? ;-) You don't need Flash to watch video on the web.
The problem is that most flash content out there is designed for big screens and mouse interaction. Therefore the flash experience on mobile devices is far from optimal.
The 'designed for mouse interaction' thing is total nonsense. This has been debunked repeatedly, but people still believe it because Steve Jobs said so.