According to Steve Jobs the iPhone doesn’t support Flash because it runs to slow to be useful. This statement comes from a shareholder meeting were jobs defended it’s reasoning behind not providing Flash support on the iPhone

Users have complained that the iPhone’s lack of Flash support makes the browsing experience less rich than it should be. According to Jobs, Flash Lite doesn’t go far enough, but the full-fledged Flash Player, which is designed to run on laptops, performs sluggishly on the iPhone. He said, “There’s this missing product in the middle.” He didn’t go so far as to say that Adobe was working on such a product for the iPhone or any other product, and neither did Adobe.

via Information Week

At this same meeting Jobs also eluded to the fact that third party apps won’t be available until this summer. So this brings the rumor that the SDK is not ready for production yet to light.

Tomorrow is the big day so I guess we’ll just have to wait and see.