I don't think it's a matter of comspiracy, but rather of control. It's seen in their app store approval process and it's key to their product's success. Why leave important aspects of a product's perception (3rd Party Software), up to chance and also make money through that control? Sounds like a good way to make a profit.
Come on, the real reason flash "can't perform" is because it would open up a competing app delivery vector that would undermine the app store. One with no approval power.