There's still a number of factors this depends on before it becomes big.
I'm guessing how it will work is the iPhone apps will consist of an embedded (in the app) flash platform that just plays the native flash code. This will require Adobe to build a native flash player that doesn't suck
Flash devs have to be willing to get a Mac and pay Apple their $99
I'm guessing (again) that Flash based games won't be able to have the same performance as native ones. The Flash player need to be able to be fast enough for some decent games that people will be willing to pay for
The iPhone UI is quite different from kb + mouse based UI, so most things will require a bit of a rethink regarding how the user interacts
It's interesting the tech media has not covered the fact that Adobe failed to deliver on their promises of a beta of Flash 10 for Android (October) and the Palm Pre ("by the end of the year") Makes me think things aren't going swimmingly behind the scenes at Adobe.
That just replaces their Actionscript interpreter + VM + JIT implementation toolchain, which was already awesome.
What everyone complains about the terrible quality of is the Runtime, which sucks ass on every platform but desktop Windows (where it is decent), and will continue to for the forseeable future.
I'm guessing how it will work is the iPhone apps will consist of an embedded (in the app) flash platform that just plays the native flash code. This will require Adobe to build a native flash player that doesn't suck
Flash devs have to be willing to get a Mac and pay Apple their $99
I'm guessing (again) that Flash based games won't be able to have the same performance as native ones. The Flash player need to be able to be fast enough for some decent games that people will be willing to pay for
The iPhone UI is quite different from kb + mouse based UI, so most things will require a bit of a rethink regarding how the user interacts