I know, stuff can still sell. I've been amazed how much Bejeweled and some other games freely available on line sell.
So I do think Apple's fear is a bit misplaced. But I do think flash apps on websites would probably eat into sales of apps that aren't games and are used less often. All the various little apps to do one task--there's usually a web version with flash somewhere. If you play bejeweled a lot, it's probably worth buying so you don't have to be online to play. Some random app you use just every once in a while? Probably not worth the buck or two if there's a free version online.
But any case, it's all speculation as none of us really no why Apple doesn't support flash for sure.
All it matters is whether that's a big deal to you or not. It is to me as currently many websites I frequent make heavy use of Flash, and thus the browser on the iPad wouldn't fit my needs.
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