Apple showed the iPad displaying Flash content as a way of showcasing the browsing experience consumers could expect. In addition they manipulated a still image to sell the iPad as a device for watching movies. The choice of a still image was based upon an intent to deceive potential customers about the shortcomings of the 4:3 format of the iPad.
In the case of the iPad watching feature films is probably about equivalent to using the camera on a smartphone. On the other hand, browsing the web is a primary function of the device, and there was no way the iPad was getting Flash.