There are other implications. By extending a hand to HTML5 Microsoft will move ahead adoption of the standard in a large way. The better HTML5 does, the worse Flash does, given their tendancy [sic] to step on each other’s toes at every turn.
By most accounts, I think HTML5 has never been better. Wider browser support, a lot of momentum. But the same can be said for Flash. Flash Player 10 was the most quickly adopted Flash Player version yet.
Maybe HTML5 and Flash aren’t stepping on each other’s toes as much as pushing everyone forward.