Since Adobe can't get Flash on the iPhone -- yet -- they figure the next best thing is to let Flash CS5 and ActionScript 3 compile native iPhone apps that can be submitted to the iTunes App Store and run on iPhones and iPod touches everywhere.
In fact, Chroma Circuit, Trading Stuff, Fickleblox, Just Letters, South Park, The Roach Game, and Red Hood -- all already on the App Store -- we also all already developed using Flash and converted to the iPhone.
Like the earlier announcement from Novell about MonoTouch letting .NET compile iPhone apps, Flash is using the same "ahead of time" compilation instead of "just-in-time" to build the native apps.
Some will say this lowers the barrier of entry for developers to gain access to the App Store. We just hope it doesn't make it so low they trip over it on their way in.
Again, from our point of view, it's ultimate not about making things easier for developers, it's about making things better for end-users. It's not about us getting more apps, it's about us getting better ones.
If a bunch of brilliant Flash (or .Net or Java or whatever.runtime) developers suddenly cross over and decide to make brilliant apps for the iPhone, then, yay! However, in our experience the truly brilliant developers are the ones who care so deeply about their apps they edit them down to the last sub-pixel level, and tweak the code until it behaves like it was born to the metal. In other words, those developers likely already picked up Cocoa like it wasn't no thing.
The other ones, the ones who just want to pump out as many $0.99 CrApps as possible -- yeah, we're worried they're turning our direction, and we have enough of them already, thanks very much.