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Well, they may not have quite said it like that, but, they did say that they've taken a look at the iPhone SDK and they believe that they can use just the SDK to get Flash on the iPhone. Sure they'd much rather work directly with Apple on this matter and make sure Flash gets fully integrated, but they've more or less said that one way or the other, Flash will be built for the iPhone.
Now, since Steve and his fiends control the pearly gates of entrance into the iPhone Developer Program, and the distribution of Apps, if Apple is dead set on Flash not reaching the iPhone, then it may still not make it to the iPhone. Just because Adobe comes up with a version of Flash for the iPhone doesn’t mean it will be added to the iPhone App Store.

I hope that Apple at the very least allows them to peddle their wares in the App Store, optimally Apple will cave and finally start working with Adobe, and it will be a great partnership, but maybe not. However with all the other apps that will be coming out for the iPhone one might wonder if anyone will care about Flash support for the iPhone. I think part of the thing with Apple not wanting Flash on the iPhone is the sheer amount of data that is transferred by Flash applications, I mean on WiFi networks that’s fine, but over EDGE it would either be too slow to be enjoyable or would majorly irk ATT.