Apple, through its iPod franchise has continued to develop and promote QuickTime. If you install iTunes you get QuickTime too. Apple's relationship with Google saw YouTube encode to support QuickTime on the iPhone leaving Adobe's Flash out in the cold.
So the question is whether the SDK will allow Adobe to implement Flash and possibly Air, there offline platform to the iPhone.
My guess is that Apple will not make it easy because the real threat is not to the iPhine but rather to the QuickTime franchise in the rapidly evolving video download market.
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