It's a smart move from Apple's point of view. Why should Apple work to support Flash or Java or any platform that is owned by someone else? Why not shift the burden of maintenance, and dealing with bugs, onto those who own the platform? And why not open the door to future Apple products that might compete in the same space?
Besides all that, this moves suggests a confidence that was unimaginable 10 or more years ago. Apple is no longer desperate for market share, the way it was in 1997.
All the same, it makes me sad. I like the JVM. I do not like Java itself, but I like Groovy and I have started to like Clojure.