I doubt it's meant as a replacement for everything Flash is able to encompass. However, if you look around the web nowadays, you'll see that Flash is in widespread use for delivering video or audio content in the browser. Something that's included in HTML 5, albeit crippled by now since they couldn't agree on any standard codecs.
Surely, all those nice Flash games and ads won't go away just because of HTML 5 and HTML 5 won't be able to replace them. But it aims for being able to replace uses that actually can deliver content. For vector graphics there is also SVG which might get some special treatment.
Whether this will really be the death of Flash for video remains to be seen. The HTML 5 video codec issues might be sorted out sooner or later. However, Flash will quite likely remain the medium of choice where content deliverers will want greater control over what will be delivered, DRM and similar techniques, &c.
