So, even CEO's are not immune from starting flame-wars.
In a nutshell what Jobs says is that Adobe has been caught asleep like the music industry was when .mp3's and the internet came about. Apple was not fast asleep, so you have iPods and iTunes.
I would hate to be an executive at Adobe, because this basically says "we gave them time to innovate, they were late (we did not hold our breath), now they want a piece of our hard earned cake for free to promote their company". I have to say I agree with Steve, because they [adobe] have not produced anything innovative since adobe reader a decade or so ago. Ever since they have trundled along just thinking people would automatically use flash.
I would say that post is the sound of nails being hammered ostentatiously into flash's coffin.
Flash was not always Adobe's property, they certainly didn't invent it, not that it was ever very novel in any way - but it's been a very fun toy, albeit deeply deprived of computationally power.
Adobe has always produced high quality products in my oppinion but when it comes to Flash they've played protectionist and not been sufficiently innovative, aggressive or both - not to say open. And that's not good for a closed platform when things like Silverlight, HTML 5 and orders of magnitude faster browsers happen to you.
This may be good news for Microsoft and Silverlight or it may be bad news (people being more wary of adopting proprietary technologies, especially when The Prophet has spoken and acted) but at least there is Moonlight as secondary and open "implementation of" Silverlight. And Microsoft is also betting on both horses now (Silverlight + HTML and friends)...
There will come a time when the Web stack will have to be refactored and depending on how advanced Silverlight et al are at the time and whether Microsoft has committed itself to open-sourcing it or move to standardization, it might be a strong contender, unless technological evolution has moved us to more radical paradigms at that time.