It’s quite a strong statement from Apple: “you can only use our compiler to write code for our devices”. The Adobe guys must be gutted at having developed a dead smart system for getting Flash-based code to compile for iPhone.
There is a good argument that Apple is doing this to preserve its uniqueness: it is unlikely that cross-platform apps will be as well integrated with the functions of a device as those that are written directly for it. It is also ensuring that Apple leads Adobe, and that this can never change. Apple can alsways add features and APIs without having to worry about cross-platform support.
As an aside, I never see in these discussions any nod to the fact that there are five Symbian devices sold for every iPhone and at a faster growth rate, let alone the installed base. It seems that pundits have just decided that this and other platforms will just die.