"I can't understand why Adobe is making these decisions when they're competing with an upcoming technology that has a such large & growing fanbase."
I think Adobe is currently a divided company. Part of it want to remain with Flash and view HTML5 as a competitior, while the other part is into HTML5 and see it as the future. Adobe makes their money from development tools, after all. The technology used to present the content is less important as long as people use their tools, even if Flash player gave them a sort-of monopoly on it's creation.
I see it as a bunch of MBAs hearing of Facebook's user base, Zynga's Flash games, and Apple's app store revenue and being driven mad with jealousy and using the term "uncaptured revenue" to convince themselves that this course of action is right.
Of course that's silly and I'm revealing my biases here a little, but sometimes this degree of cynicism turns out to be right.
I think Adobe is currently a divided company. Part of it want to remain with Flash and view HTML5 as a competitior, while the other part is into HTML5 and see it as the future. Adobe makes their money from development tools, after all. The technology used to present the content is less important as long as people use their tools, even if Flash player gave them a sort-of monopoly on it's creation.