It has nothing to do with the technology of flash. Apple merely wants to prevent the development of applications that could run as easily on Blackberry or Android as they do on an iPhone. Such inter-platform applications would seriously erode apple's app monopoly.
I think the DOJ is correct to step up it's
antitrust investigations. Using a dominant position in an industry to set terms to disadvantage other players isn't legal in this country. Wasn't Apple screaming about that twenty years ago?