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I don't see how HTML 5 will solve this issue, except that it will force people to code anew their sites, at which time they could redesign them to take into account the touchscreen functionality. So it's just like his "potential solution" A, but with a new language.
The problem does not come from Flash itself, the problem comes from the fact that current content has mostly been designed for PC, mouse and keyboard interfaces and not for touchscreen. If you don't design your content for touchscreen, it won't work in HTML 5 either.
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