Apparently the next version of Flash will include additions to the Actionscript platform that will enable a developer to export directly as an iPhone application. This article has a quick video breakdown of how it works, some examples and a mini FAQ. Part of me is excited by the idea of development for the iPhone being opened up to such a broader audience but I've also seen a lot of really bad Flash sites..and I'd prefer not to experience that on my phone.

Regardless, it's something to start thinking about and could provide some nice innovations in the not-to-distant future. Time will tell.