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.