Apple has stated its position. The market will decide if that position is valid or not.

If Flash is good and dare we say it - necessary, then demand for Flash apps will not only continue, but it will increase. Apple will be left behind with legions of users who can't use something. People will gradually shift to Android or whatever so they can use Flash. Apple will be the one who is hurt the most.

If Flash is dying, then Apple will be able to say "told ya so" and we all move on.

I don't really see a problem with this.