Adobe has not gotten around to making any sort of attempt to update flash versions for portable devices and other non-major PC devices yet. (Does it even work for Linux or Mac?) So that's not necessarily Nintendo's fault, but Adobe's. And there's not much they can do outside throw a lot of money at Adobe to do it.
My brother's had a few issues with it though, it sometimes will just freeze up, or decide that it wants to not access the internet if you let it take a break from accessing it. (Though I'm not sure if this is router, interference or whatnot..)