The ad is aimed at showing off the power of the iPhone: "The ad showed the internet navigation prowess of the iPhone, with images zooming in on a weather forecast for Cape Town and a map of how to get to Heathrow airport."
The complaints, two complaints, questioned the voice over: ""You never know which part of the internet you'll need ... which is why all the parts of the internet are on the iPhone." They claimed without Java and Flash support, this is not true. Apple responded saying it could not support ever possible 3rd party app and that it meant to suggest that access was available to websites, not to all functions. The Advertising Standards Authority felt it was misleading and ordered the ad removed. The sites shown in the ad, Apple confirmed, don't use Java or Flash.
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Guardian (include video of the ad)