But I think he's trying too hard here:
Adobe has characterized our decision as being primarily business driven – they say we want to protect our App Store – but in reality it is based on technology issues. Adobe claims that we are a closed system, and that Flash is open, but in fact the opposite is true. Let me explain.
Having to explain yourself in the first place is already saying you have something to prove.
Anyways, if you cut through all his bullshit and get to the end you realize it really comes down to a business decision i.e. Apple's interest trumps everything else.
Relevant section I mean is here:
"This becomes even worse if the third party is supplying a cross platform development tool. The third party may not adopt enhancements from one platform unless they are available on all of their supported platforms. Hence developers only have access to the lowest common denominator set of features. Again, we cannot accept an outcome where developers are blocked from using our innovations and enhancements because they are not available on our competitor’s platforms."
Basically, he's saying that Adobe is sacraficing better Apple software in sake of cross-platform software and that's not acceptable to Jobs.
Jobs lost a bit of respect from me because of that, but then again that's nothing new.