The success of the botched Skyfire addon to the iPhone sent out a stark warning to Jobs' Mob to end its campaign against Flash. In the few days since its launch Skyfire grossed almost $1 million selling about 100,000 copies during the first five hours of release and 200,000 more during the weekend.
It might have been a lot more. Servers began faltering, Skyfire pulled its own app from the App Store to avoid a crash. Since then, the company doubled its capacity and has been adding more users "in batches" that the servers can handle. The software is not that great in that it is just a workaround to play Flash on iPhone and yet users are clamouring for it.
If Steve Jobs sat down and allowed users to run flash on his shiny toys then he could come up with a better solution and everyone would be happy. The Skyfire release means that despite all the propaganda Steve has lauched against Flash, iPhone users still want it.
Of course we can't see him changing his mind. That would require several changes to the laws of physics. It is trivial for Steve Jobs to stick Flash on the iPhone however it would displace time and space if he was ever to admit he was wrong.