This does not mean the Flash player is available on the iPhone. Only that the Flash development environment can now build iPhone apps.
Apple of course does not want the Flash player on the iPhone. Why? If you can build iPhone apps that are usable through a browser, who’s going to buy them through the Apple App Store? We’ll see how badly Apple cripples support of HTML 5 in Safari since HTML 5, in some cases, will allow you to build rich internet apps and theoretically get around the App store as well.