"Limited resources", eh?
"One big objection to Flash is it isn't designed for the mobile world. It's a plugin that requires high resources as it has been designed with the desktop in mind."
So, you're saying a mobile device with as much as 32GB solid state storage, as much as 512MB RAM, and a multi-touch display with resolutions as high as 1024 x 768, 1GHz+ CPU (with multi-core likely to be the norm by this time next year), and both accelerated 3D graphics and video support, is a device with "limited resources"?
There's fuck all "limited" about modern smartphones and related devices today. There are proper *notebooks* on sale in shops *right now* that would have a hard time running anything as fancy as Unreal's "Citadel" technology demo as well as the iPad or iPhone 4 do. Android devices share much of the same hardware and OS architecture as Apple's iOS devices, so those, too, are pretty damned powerful.
If Adobe were drooling over the Nokia S40 platform, I'd understand your point, but to suggest Adobe can't pull off a decent overhaul of what is, essentially, a glorified 2D animation product with video nailed on, flies in the face of the evidence. Adobe have some pretty good programmers. (I'm not quite so convinced by their designers though.)
Adobe's biggest worry is Unity Technologies, whose own plugin / standalone technology has already effectively wiped out Adobe's "Director", and is likely to make a serious dent in Flash's popularity as a web-games platform. I don't think Adobe have quite realised exactly what a threat Unity is to Flash: there's very little Adobe's technology can do that Unity doesn't do much, much better.