[astrodust]

Making custom binaries for any device is better, Android, W7 or otherwise. A native application is always able to outperform a generic substitute.

Apple's non-support of Flash has forced content developers to put down their favorite hammer and explore other tools. It also forces content developers to port their applications and consider the format of the target device.

Microsoft has their XNA platform for Windows Phone 7, and I think that's a great thing, too, as it has been proven on the 360. You won't see direct ports from 360 to phone, it's too wildly different, but it makes developing easier. They're looking for high-quality native applications just like Apple.

If Windows Phone 7 supported Flash you'd just see thousands of trashy Flash games and most would barely work. The user experience would be terrible and people would get the impression that either the phone is slow or the apps are bad and not worth buying, either of which is a very bad outcome.

Like it or not, the walled garden approach is necessary to have some degree of control over the user experience. Other vendors will discover this if they care.