This question was made over 9 years ago. It made sense then, it doesn\'t make it now. Flash is hard on its way out; sup
Seth got most of the big ones. Others I can think of:
In short, the only reason to use Flash is "most people have it installed today" -- which can be a pretty good reason, as long as it lasts.
My understanding is that the big deal about the tag is that it is an open standard. When only one vendor can implement Flash, you are at their mercy for implementations/ports to new platforms, browsers, or even browser versions.
The excitement is all at that level, not down in the implementation details. Worrying about which is technically superior is sort of beside the point in the same way as concerning yourself about a fascist government's ability to make the trains run on time would be.
Here's my pros of HTML 5 in 2012:
It's also an advantage the video-tag is native to html, so it integrates nicely. This sounds like a non-issue, but it's not. You can for example overlay the video with some HTML caption. And the HTML caption can use the same styles as other captions on the same page.
You also can apply some (future) CSS transitions to the video element: look at this demo.
I believe this will demolish Flash, as an open source standard support on iphone and android and other mobile handsets can be rapidly implemented as well as desktop OS support. The OGG format allows me to skip forward in the video file over a regular http connection. I can right click and save the file if allowed, sharing and transporting these files will be easier. As 'proper' markup it can be navigated by the literally 100's of thousands of users using specializad devices to access the Internet. As a 'proper' dom element it can communicate with javascript allowing it to fully interact with the rest of the page content, and finally, Microsoft have a track record of pretending to ignore upcoming standards while promoting their proprietary solution, as user demand peaks they throw the rudder full right and roll out an implementation to secure their user base. Flash has been the only choice for video on the web, but not for much longer, its an excellent piece of software in its own right and I see it holding some position, but for video it's only ever been an 'only choice' runner.
Flash is slow and inefficient on non-Windows platforms. It has potential security flaws. It stores "flash cookies" on your computer that you don't know about. There is no flash on the iPhone and unlikely ever will be (as a result of its being proprietary and its high CPU consumption).
HTML 5: Could it kill Flash and Silverlight? is an article that might answer your question.
There are probably more reasons out there.