There’s been a lot of commentary on blogs that seem to think that Adobe have added this feature because they think that they may never get Flash as a plugin on the iPhone, indeed that this is some kind of ‘backdoor’ route for Flash on the iPhone. However, I disagree, I just don’t think that there’s any reasoning like that at all.
While it is great that Flash developers will have a way to get content onto the iPhone now I think that the ability to create iPhone apps is a much better opportunity for them than having native Flash on the iPhone.
Why? One simple reason: Money. A lot of people are willing to pay money for an iPhone app, but people are far less willing to part with money for Flash games that run in the browser. It simply presents a much better business opportunity for Flash developers.