I'll take that as a given, but that isn't the whole story anymore. A PS/3 has better performance than Flash, but it is harder to program for, harder to distribute on, and has a much smaller market share. Flash has been losing market share for a while, and now the cost of distribution is going to be an issue. The likely successor is HTML5 (at least for browser market share). It is not as performant and the tools are not as good, but its what we got unless someone does something interesting and radical.
Flash isn't harder to program for or distribute on. It's so easy to build in kids make games, and it's so easy to distribute since they're a single self-contained file that those kids can make games that get country-sized volumes of traffic playing them.