Actually, there have been a couple threads on here that Adobe is working on Flash for the iPhone/iPod touch.
Yes, there were articles, interviews, etc. that Adobe is working on Flash for the iPhone, but there was little to no indication that Apple was going to put it in during the September update. There was a baloney rumor on the gearlive site that "claimed that flash was coming," but everyone had already debunked that rumor.
And don't try to tell me Apple won't approve it, the SDK was mainly made for app developers, Flash is a plugin.
And, they would probably work together on some sort of an agreement.
Sure, Adobe could make an app, but considering flash needs to be integrated into the browser unless Apple specifically works on it, this won't happen. Plug-ins are not allowed for Mobile Safari.
Personally, I want flash to be on the iPhone, but I really don't see this happening anytime soon. Here are some of the many reasons why:
1. Flash is seen as a competitor to QuickTime
2. Flash, in Apple's eyes, is not an open browser standard.
3. Flash can be a means to circumvent Apple's revenue stream in music, video, games, etc.
Right now, Apple is playing the waiting game. They feel they have no reason to allow it at this moment. Maybe this will change (I hope), but I don't see this happening anytime soon.