Apple (nee Mr Jobs) have made the strategic decision not to go with Flash, and their reasons for doing so are on record. It is an opportunity (if you want to call it that) for the competition to exploit, but I don't know that it will give them that much of a leverage.
When it comes to innovation, Apple are far too savvy not to have done their homework and considered, "if we don't support Flash on iOS, how will that hurt our product?" - and judging by the crazy iPhone/iPad sales so far, it doesn't seem to have. Apple may very well reverse their decision about Flash as hardware and software progress, but clearly it is not a dealbreaker for millions of iPad owners.