Why is it a big deal? With popularity (even though it might be just the "cool" factor for it) of iPhone and iPod Touch, it will make existing millions of Flash content on the net available for iPhone. As more people use that, the platform will mature enough to be able to handle real-world applications that are already in place for many web sites.
Oracle, SAP, Lotus Notes, they all started making business apps for iPhone.
Soon enough, competing technology will have to come up with their own that runs on iPhone. What's this competing technology? -- Silverlight. MS may not have an immediate plan on making Silverlight for iPhone just yet, look at how quickly they developed their Flash counterpart after seeing the overwhelming growth of Flash market.
Yes, it's a niche market. Yes, it's up to Apple they say. Yes, the first version won't run nothing but YouTube. But you watch. It will come...
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