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but I'm pretty sure a good portion of its uses are displaced by applets (apple's, android's, etc) because of the potential of monetization and higher control.

. But this story went beyond that. Flash guys 2-3 years ago begun Alchemy project. Now some achievements of this has been included in Adobe CS5. What this stuff can do? Writing game,app whatever, and compiling it to native C. Yes.. cross compiler. And in CS5 Adobe officially added direct compilation to the C targeting iPhone. And the war begun!