Flash is the spyware, and no you cannot disable what it does, once it is installed it does what it is designed to do which is to gather as much information about you and your habits / behaviour online as possible … Thats why adobe put so much money into developing it all these years.
Its not just a Youtube player, or a free games player, its designed to make money out of using your data
It has 16 different communications methods, some of which are secure encrypted, and these can be used by anything which is designed to use flash
It also has its own programming language which other third parties can use against you when they detect it is installed in your browser.
It has what they call a transparent click map, which tracks your mouse position, movement and acceleration speed - Even if you dont click anything it watches where you are looking
It can also record anything you type or do online and send all of the gathered data to whoever is listening to those 16 communications channels
Web pages are designed to exploit it. Other plugins and apps are designed to exploit it.
But worse still, malware writers regularly find ways to exploit it, even the google version which is supposed to be more secure by not breaking chromes privilege levels ( which the original adobe one does )
You can restrict the size of data flash stores locally in LSOs ( locally Stored Objects - Super cookies ), but thats about all you can set. If you severely restrict use of those, it stores data locally to memory instead for as long as your machine remains on ( which is also useful for when you have your browser in Incognito mode ), and still gets to transmit usage data.
Adobe are not making this for free, it has many ways of getting data about you. And is the most prevailant spyware on the internet.
Thats why we dont want it in this browser. Now do you understand ?
Googles safebrowsing is really no concern in comparison with Flash, and it is a service that google are not using to gather data about you - Read the following http://blog.chromium.org/2008/11/understanding-phishing-and-malware.html