This question was made over 9 years ago. It made sense then, it doesn\'t make it now. Flash is hard on its way out; sup
More pros for Flash:
Adobe can add new features and new codecs to video a lot quicker to a mass audience (generally under a year over 90% of users upgrade to the latest version of Flash) compared to browser vendors (there's still a large number of IE6 users out there and that browser came out in 2001).
Features found in Flash that I imagine will eventually make it to browsers but are not there yet:
As those who say Flash is not indexable, check out what Google has been doing lately with indexing Flash content thanks to a headless player Adobe has supplied. So if you do a google search for FLV files, you can see that Google already indexes Flash video files.
Meanwhile, Adobe Premiere CS4 has speech recognition that will output subtitles for video files in an XML format that can be easily used in Flash video. So expect video for Flash to become a lot more searchable in the future.