It appears that Macromedia, for some insane (but doubtless "business") reason have decided to start bundling the Yahoo! Toolbar with the Flash player. You have the option to download the Flash player alone, but it’s not the default option – you have to toggle a checkbox first.
[they have been bundling the same toolbar with Shockwave for awhile now, but that's another rant entirely]
Anybody with half a brain would have seen the huge outcry this would cause – I just don’t understand how one of the most respected companies out there could make such an obvious mistake. For the first time ever, I’m seriously disappointed by something Macromedia has done.
Flash is as popular as it is because it is pretty much ubiquitous – preinstalled in many scenarios, and childishly easy to upgrade and install yourself. Macromedia has built a longstanding reputation on reliable, clutter-free, cross-platform quality software – and this could scuttle all of that. These days, bundled software – particularly "toolbars" – is considered equivalent to spyware, no matter who produces the software. I love and respect Macromedia software, but the same can’t be said for Yahoo! (I don’t use their search engine, toolbar, messenger, etc etc by choice). I trust Macromedia Flash, I don’t trust the Yahoo! Toolbar. Simple as that.
Flash already has a negative advertising connotation in the minds of some web users – again, this could cement this incorrect perception. As in cement shoes.
My company invests considerable time and effort developing Flash content. Knowing that users are now less likely to want to install Flash, more likely to call a support desk to ask for help in removing the Yahoo! toolbar, and less likely to see Flash as a "good thing" is like a slap in the face!
On the plus side, Macromedia have already responded to a post on Turdhead and other blogs. This is confidence inspiring… and as as i write this, the Flash install page seems to have reverted back to the original, toolbar-free version.
Lots of detail at rhjr.net, and of course Slashdot have picked up on the controversy :-) Ranting on hyperology.

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