Re: "Adobe for its proprietary approach to Flash."
Apple's problem with Adobe was that, although they nominally supported OS X, they put so little effort in to it they might as well not have bothered. Apple provided the Carbon framework as a compatibility layer to allow developers of OS 8 & 9 apps to port to OS X. Adobe were still using it when Apple announced that 64 bit OS X wouldn't support it, and it wasn't until the second Adobe release following that they finally had a Cocoa version of their code.
Don't forget that, although Apple had a nominally small market share at the time, a huge proportion of Adobe's Photoshop/Creative Suit sales were for the Mac versions, so it wasn't like there was no demand or money to be made. Adobe development was just hugely lazy and couldn't be bothered.
Apple didn't want to be in that kind of situation with the iPhone, waiting for Adobe to catch up with their APIs when they felt like it. More importantly Flash just wasn't designed with the idea of being driven from a touch screen. Apple's challenge to Adobe was "show us a version that runs well on a mobile phone", and Adobe never really succeeded (to the point that even they gave in and cancelled the mobile version).