I honestly don't want Flash on the iPhone or iPad.
Most Flash apps assume you have a mouse - with a single pixel sized pointer, and the ability to Hover, Click, Double Click, and Drag.
Multitouch doesn't do Hover -- at all. Dragging generally moves the view port (drag your finger in iPhone Safari, vs. Dragging your mouse on your Mac Safari to see what I mean.) And a touch on Multitouch is a rough 20x20 pixel sized area, not a single pixel target.
Adobe needs to do a re-working of Flash to make it natively support multi-touch. It then needs a way to map a finger sized area to a pixel, simulate hover, handle both types of dragging... Maybe they could make a "fake mouse" puck appear on screen, and you could slide it around (like the magnifying glass in text mode.) It's not going to be a beautiful experience unless all of the Flash applications, and Flash itself is re-engineered.
Flash was created for 1996 and the limitations that existed back then. With current versions of Safari, Chrome, Firefox, etc, those limitations are gone.
Adobe (like the existing media companies) needs to rethink their value proposition to the customer, and adapt.
I for one, would rather see content creators move to 21st century technology for new content.