Given Flash is used on so many web sites, that even Mac users are likely to visit, it puts paid (albeit via a third party) to claims that Macs are "invulnerable" to getting a virus.
I know it is unlikely, there are lots of infected Macs, but far from impossible, since different pages can be loaded depending on the O.S. of a visitor to a website, which means that some Mac-specific nasty could be put onto Macs.
As for the view from Steve Jobs, well, he's entitled to say whatever, but I have to think that some 'policy' decisions on what Apps can and cannot be included for download seems not to be related to 'keeping customers safe' but on some other criteria...
Apple has sometimes blocked competitors, seemingly because they are competitors, and in the case of some audio streaming app, gave a specious argument about network traffic (since they had accepted a video streaming app).
Then there's the furore over Sports Illustrated (and Playboy to name just 2) being allowed to have apps showing girls in bikinis while Apple 'banned' other firms. Nasty whiff of backhanders on that story, while Apple seems to have some 'moral crusade' (presumably to be seen as "family friendly" in some of the more puritanical homes in the USA).
Glad to see that latest release of Android already has Flash 10.1 in it, though clearly whatever the flaw is, Adobe needs to fix it, and fast!