The iPhone Flash saga is a long-running show. First Adobe said they were going to do it come hell or high water, then they backed off, then Uncle Steve seemed to put the kibosh on the thing permanently. Now, however, Bloomberg is quoting the Adobe CEO as saying that "It's a hard technical challenge, and that's part of the reason Apple and Adobe are collaborating. The ball is in our court. The onus is on us to deliver."
The surprising part there is the admission that Apple is working with Adobe on the project. It didn't seem like Jobs was at all receptive to the idea back in March of last year, but maybe a new iPhone-specific Flash player could avoid the pitfalls of the resource-hogging desktop version on the Mac, while still maintaining enough power to surmount the objections to Flash Lite. I have to admit that I'd love to go straight to Hulu or Sling for streaming video on the iPhone, but given their record on the Mac desktop I'm a little skeptical that Adobe can deliver a good solution.