A breathless report from ZDnet's cadre of "reliable sources" says that Google
That's great to hear, as I'm currently running Chrome with Flash disabled. The darn thing crashed my browser too often, and will now only run on my explicit command. If Google integrates Flash functionality into the browser itself, it stands to reason that this cleaner and simpler solution makes Chrome a better browser -- more reliable than before but without sacrificing functionality.
But Google's motives aren't what you might think. Some call this a direct attack on Apple
A rising tide of security lifts all online boats, where no vessel is larger or benefits more than The Good Ship M/S Google. Better browsers means happier end-users, which leads to more browsing and more clicks on revenue-generating advertising links. It's a branch of the same strategy that makes the Android mobile phone platform a winner even if Apple or Research In Motion
So, congrats to Google for getting Adobe on board and to Adobe for one-upping Apple in an unexpected fashion. But whatever Adobe's goals are, Google really doesn't care to kill Apple in any way, shape, or form.