Way before this letter, many developers including myself asked Macromedia / Adobe to rather pushing Flash as web browser plugin on mobile, focus on apps with embedded runtime. They realized it too late with AIR framework, but it was too little too late.
It was a flaw with the vision Adobe had with Flash, and they missed an opportunity being leader in mobile development.
Now Apple is kind of doing same for web, they've quietly removed that letter, as it now conflicts with what they preached in past.
Only last complete dance messed up, rest of the app works (without using custom image as uploading script and DB is not there anymore)