Apple has seemed disingenuously reticent to get Flash on the iPhone. Jobs said the technical challenge was essentially insurmountable; throwing its head back, Adobe lolwhutted and said they could have Flash on the iPhone stat, if Apple would only give approval.
Now Adobe CEO Shantanu Narayen is claiming that a deal has been strucky on iPhone flash: “It’s a hard technical challenge, and that’s part of the reason Apple and Adobe are collaborating. The ball is in our court. The onus is on us to deliver.”
That certainly sounds promising... but there's the whiff of wishful thinking there from the Adobe CEO. Say it enough times and maybe it'll come true. Consensus opinion is that even if it were possible, Apple is freaked out about the idea of a full-functioning version of Flash for the iPhone cannibalizing sales in its App Store.
That's certainly compelling: there will be no reason to pay Apple $0.99 for virtual flashlights and succulent flatulence generators if Flash comes to the iPhone. Which is also a compelling reason for the consumer to want it to come.
My guess is that if Flash comes to the iPhone, its going to essentially be stripped of most of its interactive functions, and largely be an app for online video and audio. And I bet you'll have to buy it through the App Store.