Adobe ceases development on mobile browser Flash, refocuses efforts on HTML5

So this seems to be big news coming in from last night: ZDNet is reporting that Exclusive: Adobe has ceased development on mobile browser Flash and will refocus efforts on HTML5.

This is interesting for a few different reasons... my thoughts:

• Was Apple right from the start?
  
• Will this affect the competitive advantage that Android tablets and phones have over the iPhone in their ability to run flash?
  
• Has Adobe admitted defeat? If the iPhone wasn't a force to be reckoned with, why not continue development (assuming they believe that the future is in Flash and not HTML5)?
  
• How will they deal with the issues in HTML5 that Flash has been effective for working around, ie: code obfuscation, hiding your source files, etc? (though this is more an issue for the desktop and not mobile I suppose).
  
• Is this a prelude for things to come for the desktop?
  

Some other reading can be done over at yahoo news or the official press release over at Adobe.