I think I'm Apple's side with the latest ASA ruling. The crux of the ASA's argument is that Flash and Java are part of "internet". It's dangerous because it makes a precedent that supporting these proprietary applications* is the only way you can support the full fat internet. This is something free software will have big problems doing. Perhaps Apple would of escaped the attention the ASA if they had said the iPhone gives you access to the standards based World Wide Web.
Note that I'm overly worried about Apple's shoeing. I get pretty good access to most well written HTML pages on my k800 with Opera Mini. However my main concern is the if the up-coming open platforms such as the Open Handset Alliance phone or the existing Openmoko platforms can't make claims to give access to the internet without Flash.