You've gotta hand it to Steve Jobs. When the man decides that he wants something to be removed (in this case, Flash) from a platform he created, he really goes the extra mile to make sure he does it right. With the release of the iPhone OS 4.0 beta today came an updated developer agreement, which featured an interesting paragraph: applications that link to documented APIs through an "intermediary translation or compatibility layer" are strictly banned, according to John Gruber, which means Adobe's Flash-to-iPhone compiler is out.
Apple is definitely very controlling when it comes to its platforms, which is both good and bad for consumers. Whether or not Adobe will choose to include the Flash-to-iPhone ability in Flash Professional CS5 has yet to be seen, but now that this is out in the open, there won't be much use for it if they do.