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I guess it depends on your vantage point, if you are working on Flash sites for a living it might have carried on being a popular niche for longer.
All I'm saying is that looking at the scene as a whole, I could see a clear trend away from Flash in terms of the kinds of sites designers and agencies were making which accelerated during the mid 2000s. It had less to do with Apple and more with the emergence of jQuery and other JS-based solutions for what Flash was trying to do. No it didn't give you the ability to replicate everything Flash could do, but in many cases it was good enough there was increasing adoption of a "standards mindset" within the design community.
Also raf is absolutely right that Adobe shot themselves in the foot by trying to position Flash as a tool for rich internet applications, which was a dead end movement and alienated designers.