The idea of an Apple-Adobe feud is vague, I think. The two big reasons why Flash isn't on iPhone is because it'll use up a lot of CPU power and memory and like I said, AT&T can't handle that much data streaming over its network.
However, Apple is notorious for being a closed proprietary ecosystem. That means whatever applications are built by developers for Apple's platforms have to be built using their platform tools and approved by Apple to be circulated (or sold) on their platforms. If you think about it, a developer can bypass Apple's app store and port their videos or games through Flash instead or a site that enables Flash (i.e. Youtube). So, that might be the root of it, really. That's why Android-enabled phones are important because the fact that it's open-source lessens the barriers to develop for it. With the kind of branding and hold of the market Apple has, it'll take a while if Android ever beats out iPhone as a platform.
Whatever the case, I like the Android system. There are still design flaws but the fact I could get a more complete mobile web browsing experience, with access to Youtube, Netflix, Hulu, etc. is more appealing to me than iPhone.
Anyhow, what I'd really love is for a true 4G network in America