Why anyone thinks this whole flash squabble will spill into other areas is beyond me, both companies know they depend upon each other outside the realm of flash.
Exactly. It's all politics.
At the executive level, I don't think there's any denying that Jobs doesn't care for Adobe's current management. Bruce Chizen, the guy who previously ran Adobe, seemed to have a cordial relationship with Jobs. I'm sure the fact that he was former Claris executive and served on the board of Oracle, Larry Ellison's company, helped.
But I would imagine Apple and Adobe's actual relationship between the people that matter (product teams, etc) is very good.
Here's an interesting nostalgic keynote where Jobs addresses Apple's need to rebuild its relationship with Adobe:
http://www.youtube.com/watch?v=PEHNrqPkefI#t=18m48s
Interesting that Mac market share was hovering around 7 percent there too.