it's purely a business decision
as one other person here has said, the MAIN reason apple does not support flash on the iphone, ipod touch or the iPad is that it would directly compete with the App store. If apple allowed flash on these devices then developers could just write flash apps that work everywhere, but they would get minimal income. Forcing them to the app store ecosystem is the whole point behind not allowing flash.
Secondarily, flash sucks. I have a 2.4 mhz mac book pro, and my fans rev up any time I watch flash video, even the video on apples own website (the ipad video).
yes flash is here to stay, no doubt, but apply wants to minimize it's dominance as a web programming language.
I would LOVE to have flash enabled on these devices, but i'm happy apply is not including it, because then the transition to HTML5 will happen a bit quicker, and finally flash video will be dead. Flash is great for many other things, but video is not one of them, it just happened to be the most installed plugin.
I for one, will be buying the iPad. I'll sell my macbook pro and buy a new 27" iMac. Then I have a great desktop computer for work, and an iPad for reading, movies, etc. I'll probably sell my wife's little hackintosh netbook and buy her an iPad as well. Its perfect for her and millions of others out there. We tech people are so critical, but for the average user, the iPad is amazing.
When Rev B comes around, yes it will have a front facing camera, and yes, many of us will upgrade. oh well, I should have kept those apple shares I owned long ago