Straight from the web site!  I will update as I learn more.

* I just tried one of the apps, and it works great.  And that is not surprising because is coco, but still, anytime you go from one language to another there are risks.  But so far, so good.

• 3 of the demo apps are free, 4 costs 99c.
• This is not Flash10.  This is to create installed apps written in AS3. So even though its not a true browser plugin (so STILL no flash video) at least we can reuse assets and code from other projects to create iphone apps.  I would expect TONS of flash games to come to the iphone as well as Android and Palm Pre.
• Also, this is not a true flash player where you can include other .swf files.  The code is native coco, so many of the tricks we used in Flash do not work here.  Figures.
• However, since it native coco, I would expect the SDK will give us access to the hardware, camera, accelerometers, compass, etc.. So I expect to see some really cool AR apps in the near future.

Something else to consider.. Think of all the little games that are out there in flash already, especially the flood of new games that have been coming to facebook.   All of those games can now port over to the iphone (and android and palm) quite easily. And then add all the little flash games on tonnes of websites also making the port.  Since we are talking AS3, I would bet 30% of the games could be ported with a week of work or less (per game, not all the games.. sheesh).  Anyway, I expect a flood coming a month or so after the beta SDK comes out.  I have 2 apps in mind that I will port right off the bat!

Flash Professional CS5 will enable you to build applications for iPhone and iPod touch using ActionScript 3. These applications can be delivered to iPhone and iPod touch users through the Apple App Store.*

A public beta of Flash Professional CS5 with prerelease support for building applications for iPhone is planned for later this year. Sign up to be notified when the beta starts.

http://labs.adobe.com/technologies/flashcs5/appsfor_iphone/#divider

At the MAX 2009 show, they demoed a number of flash apps that are in the app store right now.  So, what are you waiting for? Download and test.  There are with the prerelease version of CS5, so do not expect to be blown away nor bug free, but still, its about time!!