Apparently Adobe has developed a way to make iPhone apps with Flash—apparently without Apple’s consent or help. It will be interesting to see what Apple does with this; clearly they didn’t want Flash movies (SWF files) running in the iPhone’s Safari browser, and while this has been annoying at times, there is also a part of me that is glad someone said no to Adobe for once. However, I also think Apple needs to open up in a lot of ways.
Jeff LaMarche’s blog is the best place to reach more about the issues.
As a longtime Adobe user —my primary expertise was once Macromedia Director, which became an Adobe product when Adobe acquired Macromedia—I use Flash to mock-up ideas and experiment and I can say that it takes five times longer (or more) to develop a basic app like the one I am working on now in XCode than it would in Flash.
However, now that I have put a lot of blood and tears into learning Objective C and the iPhone development environment, it would almost be too easy to do it in Flash…

Flash must die so that sensible platforms can live! (Not that I know of any, yet. But I’m thinking maybe Cyber Dog might make a comeback yet.)
http://www.biocrawler.com/w/images/e/ec/Cyberdog.png
BTW – Spiffy blog you got up in here!