
There are rumors of a deeper partnership between Google and Adobe - the Chrome browser may ship with Flash built right in. The implementation of the new HTML5 standard is a large threat to Flash, as many video playback features are standardized and integrated into the new code. One of the main complaints about flash is that it is a stand-alone installation that must occur on all browsers, rather than being a shipped component.
Flash is also working with Google, Mozilla, and the internet community in general to create a new API that can provide a better way for plug-ins to interact with each other. They state that the current system lacks the flexibility and power to support the expected pace of innovation.
The largest issue that Flash has historically had to battle were the security issues that it has had to battle, most notably the security risks that were introduced by the use of their features. The most popular (by a slim margin) non-computer devices that surf the internet are also not Flash compatible, producing yet another barrier for their continued existence. Only time will tell what will happen to the company - I really do not see room for them in the future.