I updated my 2012 Nexus 7 to 4.4 and found how to fix flash for Dolphin browser - see this thread on xda -
http://forum.xda-developers.com/show....php?t=2548001
I also do not have the italic problem with Moon+ and I think it's related to what font you use. I use Roboto regular and italic looks good. If you choose the default fonts it seems to work too - the generic sans, serif, and mono at the top of the list of fonts. When I tried any other font except Roboto regular it seems to use Roboto for italic. Roboto is the default system font so that makes sense - if it can't find the italic you want it defaults to the system font.