I still find Flash useful on my Atrix for watching video-on-demand services, but its ability to use a touch-centric interface is atrocious. Not horribly upset that it isn't on my iPad.
The multi-touch APIs are relatively new in Flash Player. Hopefully that will improve as developers work against those as well as the mouse-centric APIs that have been used traditionally.
No, hopefully it will just go away. Flash should be considered legacy at this point, we shouldn't be developing new dependencies when we're finally getting movement on the HTML standard.
Do you really think the various browser vendors are going to implement the new HTML5 features identically? Its already a mess. The real advantage of HTML5 is that it will allow vendor lock-in to take place.
I'm not a tech zealot, one way or the other, but Flash is going to be here for awhile regardless of your hopes. In the meantime I'd expect improvements in its overall usability on touch based hardware.
