Android has Flash. BlackBerry is getting Flash later this year. The only major mobile platform that won't have Flash is iOS, and that's because of Apple's refusal to allow browser plugins to be coded with the SDK, not Adobe.
Fanboys conveniently ignore my previous post, in which it is indicated that Adobe has now shipped Flash 10.1 for most mobile platforms :
https://forums.macrumors.com/threads/949077/
Arn insisting on posting bad stuff about Flash as page 1 news but ignoring the positive stuff only exacerbates the problem.
As for embedding, I think you need to read again what is said :
Encapsulation + Embedding
Flash Player's ability to combine application code and resources into a secure, efficient package has been instrumental in allowing YouTube videos to be embedded in other web sites. Web site owners need to ensure that embedded content is not able to access private user information on the containing page, and we need to ensure that our video player logic travels with the video (for features like captions, annotations, and advertising). While HTML5 adds sandboxing and message-passing functionality, Flash is the only mechanism most web sites allow for embedded content from other sites.
They are talking about embedding a Youtube video in something like phpBB forums, the Youtube tag. They aren't talking about embedding video in your own webpage where you control every aspect.
And their reasonning is sound. If I were to need to embed the HTML5 video from Youtube, I obviously can't use their player without modifying my own webpage. Embedding their Flash component gives me all their features instantly, because I am essentially using all their code.
What is done with a simple embed tag with Flash will require multiple script tabs to go along with your video tag and a deep understanding of how the player works.
Their reasoning is sound, your dismissal is pure ludicrousness. You lack understanding of the subject and it is really sad that we have to have you post on this subject. This will not help HTML5 adoption if all the truely interested parties aren't open to discussion on how to make HTML5 usable to developers out there.