Looks like the stand-off between Apple and Adobe has come to an end. For now. Adobe announced its new Flash Media Server 4.5, which will automatically make Flash content viewable on Apple's iOS devices.
The new Media Server will allow web developers to use Flash to create content, and have that content automatically exported as mobile-device-friendly HTML 5 when accessed by an iPhone, iPad, or iPod Touch. However: This does not mean the iPhone will support Flash. It simply means developers can continue to use Flash while streamlining the process of making their content available in an iOS-friendly format.
Smart move, Adobe.