Jobs does not like Flash and is rallying efforts to encourage everyone to move to HTML5. Many are suspicious that Microsoft agrees with him.
However Adobe is working out a way of having its cake and eat it. According to Cnet, Adobe has worked out a rough way that Flash can use HTML5.
Adobe Flash Professional Senior Product Manager Tom Barclay said that they have it going roughly at the moment and it needs a bit more work. However it means that Flash can use HTML5, perhaps for banner ads and Web publishing, while keeping its use for games that require complex interactivity.
At the moment they have arranged it so that most of the Flash file gets converted. It can manage drawing elements, fills, shape tweens, motion tweens, symbol names and instance names. Because it uses Adobe's Air, both Windows and Mac based developers will be able to use it. If Steve Jobs allows Macs to run Air in the future of course.
The built-in logging tool tells you which elements were not converted, and these currently including the audio and video tags.
Barclay wants feedback from developers before it decides if it will add support for the more complicated aspects of HTML5.