This will be bad for device manufacturers though. Many users will think "iPad with Flash still can't use lots of Flash" when many Flash sites depend on things such as mouseovers and other events that don't make sense on a touchscreen UI. We would know it's the site's fault, but it'll give iPad/Android/etc. a bad image.

In practice, many user experiences have ready substitutes, so people would rather have a different, good user experience than any specific bad one.