We're.... misattributing some things here, I think. Flash was a bundle of good things and bad things, as we all more or less agree. Good for creativity, bad for usability and accessibility and security, etc. You could, obviously, do so many things in Flash that were impossible with web standards. But, why was there such a gap between what you could do in Flash and what you could do with web standards? Why was Flash e…
Microsoft didn't "quash" any innovation, the ActiveX framework allows more innovation than any other browser on the market, Flash was invented as an ActiveX plugin, so does AJAX and it started the whole Web 2.0 era. IE had so much incredible feature that it makes modern looks like a dull corporate utility. We had VRML and vector graphics. We can playback videos with IMG tags. Heck we can even embed the mighty DirectX on Web. Chrome basically re-invented everything we already had with dHTML in the 90s.
Microsoft didn't took down ad blockers by crippling the API. In fact there's innovative abuse problem with IE, think all those toolbars!