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Flash does make the CPU work a lot, that's true. It also opens a lot of security holes.
There are people who think Apple is wrong on this, but they control 160 million iOS devices and the industry (us included) are going to (with videos) transcoding FLVs on the fly and ultimately will do more in HTML5. (Microsoft is supporting HTML5 as well, so expect widespread adoption.) Adobe is scrambling, but it may be too little, too late
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