It might be one of the most demanded features by both the Flash Platform and the iPhone users communities. Just a few seconds ago, Adobe announced that it is now possible to create iPhone applications using Flash!
You can find a detailed article on Mike Chambers' blog. Basically, Adobe is using the might and mighty LLVM (already used by Pixel Bender and Alchemy) project to create native iPhone applications from a SWF file.
Here are some additional resources targeting the iPhone using the Flash Platform:
Flash inside Safari Mobile is not there yet but it is still something Adobe "continues to work on"...