John Gruber points to a post today advocating Adobe make a version of Flash Player available to the jailbreak community here. It's an interesting idea, but I'm not sure it would make much of a difference.
I really think the only way Adobe can really win this is by making Flash truly open source. It's time to give back to the web community as a whole. This would really change the face of the conversation, and signal an all out attack on the principles that Apple has been pushing.
Adobe, haven't you made enough off of Flash over the last decade to now hand it over to the web community that made it what it is today? This wouldn't stop you from creating the best authoring tools, although it would certainly create additional competition for you...and your $700 application.