While some people see this as a blow to Apple, I think its just reassurance for iPhone application developers.  If you start providing Flash, then why even create games and charge for them when you can play free Flash games online.  Adobe has been working for several years for a solution to provide Flash technology for mobile devices.  About 40% of mobile phone users are working with Flash Lite, but it isn’t as good as the desktop version of Flash 10.

“We would love to see it on the iPhone, too,” stated Anup Murarka, Director of Technology Strategy and Partner Development for Adobe. “But it’s Apple’s decision on when and how they support any new technology. So we will continue to work on it.”