Flash definitely has it's place. Macromedia used to say it was installed on 98% of computers. I'm not sure how those stats have changed recently.
I think flash video is a fantastic tool in terms of accessibility. It can compress and deliver video online better than anything else out there. For users without a broadband connection, this is great.
I guess the point is, use flash for the right reasons. Choose your delivery method based on the content you're pushing and the audience you're aiming it at.