According to several sources, during Flash on the Beach, Adobe announced that it is "actively developing" a port of the Flash runtime to work on the iPhone. It would be in Apple's best interest to help Adobe along with this process.

No dates or feature/compatibility information is available right now, but I certainly hope that Adobe takes into consideration that the Flash 9/10 support (as opposed to Flash "lite") would open the doors of iphone development to Flex developers.

Bringing Flash to the iphone will not only address a huge customer demand, but it might also put Apple in a better place to deal with Google android as it begins to grow and take on its own market strategy.

Sources quoted: http://blogs.pcworld.com/staffblog/archives/007842.html
http://www.flashmagazine.com/news/detail/flash_for_the_iphone_confirmed_at_fotb/
http://itknowledgeexchange.techtarget.com/business-presentation/adobe-flash-on-iphoneipod-touch-another-advancement-for-mobile-business/