Earlier quoted context omitted.
http://en.wikipedia.org/wiki/Adobe_Flash#SwfDec Adobe actually made their Flash money from tooling and supporting services. If they open sourced the spec and turned it into a commitie it would be in the same mess as HTML 5 and lose it's advantages (fast development, adoption for example).
It suffers from the biggest disadvantage of all: being proprietary. Flash is a massive wart on the free web.
If proprietary was such a big disadvantage why would it exist at all?