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Yes, I found a workaround, though the underlying issue is unexplained.

If I set a site preference for vimeo.com to identify as Safari 4, the iframe video plays back in Flash (confirmed with the context menu containing Flash related menu items).

On the other hand, a site preference for Vimeo identifying as OmniWeb or Safari 5 results in what appears to be HTML 5 video. In that case OmniWeb still selects the Perian as the codec instead of whatever Safari 5 uses. Still not clear why that would occur.