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Actually, that's EXACTLY what they're suggesting.

They want everyone to continue to use Flash which only THEY have control over.

Yes, Jobs (Apple) wants control over the platform that THEY built. Lot's of folks don't like that. That shouldn't be a problem. You can buy a non-Apple product.

The context of Adobe's argument is the complete opposite. I'm a little surprised that the people making the argument that Apple's closed architecture is restrictive make the same argument in reverse for Flash

HTML5 video hasn't been done yet? Have you been to Vimeo? Is THAT a made up statistic?

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