Google's reasons for the move:
We believe this initiative will help our users in the following ways:
- When users download Chrome, they will also receive the latest version of Adobe Flash Player. There will be no need to install Flash Player separately.
- Users will automatically receive updates related to Flash Player using Google Chrome's auto-update mechanism. This eliminates the need to manually download separate updates and reduces the security risk of using outdated versions.
- With Adobe's help, we plan to further protect users by extending Chrome's "sandbox" to web pages with Flash content.
For now you'll still need to use a command line switch to use the built-in Flash plug-in (add --enable-internal-flash to your command line or shortcut for starting Google Chrome), but in time, expect all versions of Chrome to use the built-in Flash player by default. At a time when HTML5 is changing the web and taking over at popular sites, it's a pretty interesting move by Google.
Dev update: Integrated Adobe Flash Player Plug-in [Google Chrome Releases]