See the full post for details and a link to a cute MythBusters-inspired part of the Adobe MAX day 1 keynote today. Then go here to read the Adobe developer FAQ. My $.02: what a cosmic waste of resources to work around Steve Jobs’ spiteful intransigence; also an interesting suggestion that perhaps the Flash Player is superfluous on modern device platforms, for a wide range of app scenarios.
Basically, Flash Pro CS5 allows developers to use Flash technologies to develop content for iPhone and iPod Touch devices that were previously closed to them. The Flash developer tool converts Flash apps into ones that can work on the iPhone, since the iPhone still does not support Flash. So this is a workaround. But developers can write new code or reuse existing web content to build applications for the devices, and because the source code and assets are reusable across the Flash Platform runtimes (Adobe AIR and Flash Player) it is aimed to also give developers a way to more easily target other mobile and desktop environments.