Given the CPU usage of the HTML5 examples shown in the video it seems like Flash is not alone with that problem.
With regards to designing entire sites in flash. Go to thefwa.com check out some of the sites on that portal. Then tell me why you would want an HTML fallback for that? That is kind of like saying that all video should have transcription of what is being said.
Sometimes there is no substitute.
With regards to the open web argument. Since we are in agreement that Flash isn't the be all end all of the web, then what is the problem?
If HTML5 is better then it will eventually outcompete FLASH. Until it is, support both. That is what I don't understand with Apples claims.
HTML5 is right now rather resource intensive as shown in the video. It actually going to be worse for the battery life of an iPad than flash is.
It's a hollow argument.