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IMO, Flash can be totally appropriate for both.
For menus, a company may wish to use a particular font, for branding or other purposes. Why exactly do you dislike it? In virtually all cases, it will function the same.
For ads, well, someone has to pay for all the content. Would you prefer to pay for each site you visit? If Flash disappeared tomorrow, the same ads will appear in other formats, just uglier....
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