iPhone supporting YouTube, but not Flash

Flash Videos, the video format owned by Adobe, got a shock due to 2 major reasons. First, it seems that Apple will not use the Flash player on the iPhone, and then YouTube declared that it will re-encode its videos in the H.264 video format. YouTube's videos were earlier being encoded as Flash Video, a big support for the Flash Video format. That now seems to have gone.
Adobe will need to spend some effort on figuring how to make sure that such things are not repeated; even if this was due to a business conflict between Apple and Adobe, it has made life somewhat more difficult for Flash and Flash Video. The Flash Player now has to battle fears of being slow on the mobile platform, and Adobe needs to trumpet up the success of Flash Video with other broadcasters. Refer this story:

Just as the Apple TV is now YouTube compatible thanks to the H.264 format that YouTube’s video collection is being re-encoded with, so too is the iPhone able to display YouTube’s H.264 videos thanks to a special player iPhone users will see when visiting YouTube’s site.
Currently only 10,000 of YouTube’s clips have been converted thus far, but YouTube is promising to have their entire collection progressively re-encoded over the next few weeks and months, ensuring a steady stream of new videos for iPhone users who are also YouTube fanatics.
With the iPhone only a few days away, revelations of improved battery life and an improved screen have only added to the iHype over the past few days. The YouTube announcement has sent the hype meter off the scale once again.

And of course, with the projected release date of the iPhone only a few days away (29th June), the Apple PR machinery will be going all out to have the device written about widely every day, such that it remains on total recall; and there are incredible first week sales that make this the device to own for those not yet bought on.
Anyhow, back to Flash. Adobe needs to make sure that the Flash Player does not develop a reputation of being memory-hogging or battery draining on mobile devices, that will be a horrible reputation.