iPhone’s inability to read Flash is an ever going story between Apple and Adobe. Originally due to Flash Player eating up too much resources it slowly became a little bit of a tension point between the two big companies.
Adobe announced many times being ready for the iPhone and having betas already running but Apple never went Adobe’s way. The story continues now with Adobe adopting a new “passive-aggressive” position as Engadget calls it.
If you go to Adobe’s Flash Player download page from your iPhone you’ll be getting a nice little explanation about the state of the issue, it might seem a little straight forward but come on Apple, why can’t we have Flash?
[Update : Apparently the message has been there for over a month already and it's only starting to get some echo now. Thanks to @sclyde for the tip]