Microsoft (Silverlight) and Adobe (Flash) are trying desperately to push their respective technologies for developing RIA (Rich Internet Applications).
Both seem to be taking this further ahead to mobile devices. Recently, Microsoft had signed a deal with Nokia to integrate Silverlight on Nokia's latest S60 based smart phones.
Adobe though having a dominance in the PC space must be doubly worried after Steve's comments on why Flash may not suited for iPhone.
I found this post from Robert Scoble providing interesting insight on why Apple may feel that Flash is not good for iPhone. More than the article, I found the user comments more intreseting.
Also, it got clear to me from the user comments that Apple was trying to port Flash 8 (and not Flash Lite - stripped down version) onto the iPhone.