That's an interesting point, Shawn. We fought the Anti-Flash hysteria for a while, and then we backpedaled a bit, until we found a balance that we could work with. Did we make the right decisions at the right time? That's debatable, and my own gut feel is that we probably didn't. But, that said, consider this ...
Flash has always had to evolve as market needs evolved (something I've discussed before). Flash's role was an ever changing one. And more importantly, as it's entire existence was based on the need to make up for what web browsers couldn't do, that role was always going to be diminished as browsers got better. In other words, Flash was always going to gradually become less significant, so the debate then is whether we unnecessarily accelerated that process.
That's why we've always tried to juggle multiple balls at once. Be it successful experiments like Edge Code and Edge Animate, or lesser successful ones like Flash Catalyst, we keep experimenting with all available technologies and options because there is no one size fits all.
Ok, so why not do it all? The energy we were putting into the uphill battle that defending Flash become was costly, and started to distract from really important efforts, like furthering new product creation, the build out and deployment of the (very successful) Creative Cloud, and more. Back then we couldn't even demo or talk about new products or initiatives without getting into a Flash discussion, and this happened with press, customers, and more. Seriously. I was on a panel at MWC discussing web standards, and the first question from the press (when they saw I was an Adobe employee) was about Flash and Apple, and the entire discussion got derailed.
And so at some point we had to make a business decision. Do we keep pushing, do we expend energy refuting lies and myths, do we keep executing from a defensive position ... or do we back off and focus on where we as a company can succeed?
So we refocused. Flash remains important where it continues to innovate and add value, in browsers on the desktop. On devices the priority is Flash packaged using AIR, as well as using web standards and PhoneGap. And in doing so, we are freed up to invest time and energy and resources where we believe we can have the greatest impact.
Take emotion out of it (and that's not easy, I know, especially for those who invested years and their careers into the product), step back, and look at the entire business, and it becomes very clear that we made the right decision. We can debate the details of timing and execution, but the bigger business changes have proven themselves to have been sound.
--- Ben