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Frash, a Flash player for jail-broken iPads, looks promising for Flash aficionados.  Frash is in development by Comex, who introduced the iPad "spirit' jailbreak not long ago.
 
News from PC World talks of a port of the Android version of the Flash browser plugin which runs in Safari (through a compatibility layer).  The articles includes a demonstration video containing snippets of games running from Kongregate and other sources.  Although mouse and keyboard support on many existing games is obviously an issue, the developer(s) are planning to address this issue in later releases.
 
Now - I don't condone jail-breaking or other illegal activities, but it is nice to see Flash running on the iPad when it is claimed by Apple to be impractical for various reasons.  It is unclear from the video exactly what performance is like, but I maintain that even if current content does not work well, something optimised for mobile devices and made with the iPad in mind would run brilliantly.
 
I don't think this will change Steve's mind, but great to see nonetheless!