Here's the situation:
Flash hardware acceleration is totally possible. I know that, you know that, they know that. In theory, it should be working. We have Honeycomb 3.1, the latest Flash Player in the market and everything seems golden.
The problem is that the Flash Player itself is not loading a module called "Stage Video." This module is required for hardware accelerated playback on any device. Stage Video has to work on your PC if you want acceleration there, it has to work on your Transformer if you want acceleration there too. From what I understand, there will be one of two reasons why it is not working. Either 1) Adobe passes the request off to the OS and the OS replies that it cannot do it (Asus's fault) or 2) Flash Player assumes that this is a low-end Android device and doesn't even bother trying to load the Stage Video module (Adobe's fault).
Having the kernel source will not fix this problem because this is not where the problem lies. Hopefully this is just a problem with Flash Player not being aware of what the Transformer is and--wrongly--refusing to load the Stage Video module. That should be an easy fix that they can push to the market as soon as they identify and correct it. If it's a problem with the Asus built Honeycomb libraries being modified in such a way as they are borked, then this requires Asus to solve the problem.
Does this make sense? Right now we're at the mercy of Adobe (and maybe Asus) to solve this problem for us.
sassafras