I like open source and while there are more and more projects following that principle every day, only big companies with great self-esteem can afford to keep closed software policy. I don't think that's good though because when that self-esteem becomes too strong customers tend to suffer. We hear about "open" and "free" technology every day now and that's not, by any means coincidence. People don't like to be limited to whatever the company feels like profitable, especially if technology they want is widely used and free. People like to have what they want where they want it and companies that don't consider this are actually fighting with their customers, which is bad in any book. Apple refusing to implement Flash (even optional) when about 70% of all video and casual gaming (facebook games, free flash games, etc) content on the web is Flash based, isn't something they should be proud of. If customers don't need Flash there wouldn't be so much Flash content on the web then. Apple is blinded by it's enormous self-esteem and they can't see that their fighting with customers over something that simple and small, only because they think they can.
I'm not an economy expert but I don't think that Apple (or any other company for that matter) can relay completely on self-esteem and brand. This is not something you can count on in long terms because one mistake and you'll lose it and then what?
To summarize, Flash content is all over the web, like it or not you can't deny it. People use it, people want it, people like it and you can't just say no, no matter how big of a company you are. This is something people an Apple need to think about again.