I think Adobe is screwing up enough things with flash that it is doomed now (if HTML5 wasn't going to do it in). I use Firefox for my browser, and a few weeks ago I was no longer able to view Youtube videos (or anything else flash) after an update. I searched around and found many others having the same problem. Luckily, I found a solution relatively quickly - but it was to disable some functionality of RealPlayer that was conflicting with flash. From what I read, there are some folks who still haven't been able to get videos working.
In December I picked up a Transformer Prime for me and an iPad2 for the wife. The main reason I picked the Prime was because of Flash and because I really loved my Droid Incredible. Unfortunately, I had a Prime that had issues and I returned it. I ended up getting myself an iPad because 1) there wasn't another Android tablet that I was that excited about, 2) I had a couple weeks to play with the wife's iPad and liked it, and 3) my office uses a couple pieces of software that are only available for the iPad at this time. I can tell you this - in the six months I've had the iPad, I can count on one hand the number of times I've hit a website that I couldn't display because of flash. And for those few times, whatever it was I was surfing to see wasn't something I wanted to see bad enough to get up out of the chair and go to the computer to view the site.
I watch a fair amount of video on the tablet, but mostly Netflix, HBO2Go, Cinemax2Go and the big network sites, so I'm not that wound up about flash since I've had almost zero problems doing what I want. For those of you that do frequent sites that rely on flash, I can understand your frustration.
The point my long, rambling story? I think the ire should be directed squarely at Adobe. They created this software, got it out there and it was heavily (?) adopted, and now that it appears to be going the way of the dinosaur with HTML5 coming, it sounds like they're dropping some support for it a little prematurely to suit many folks that rely on it. I say blame them, not Google, Motorola, or anyone else.
~Gary