Swiffy works well if you want to convert someone else's Flash content, while Wallaby is good for developers to convert their own content and then add any additional functionality that is missing from the conversion. As Swiffy's output isn't easy to read or edit.

As the above comment points out, this mainly works for Flash 5 content, so we are looking at mainly simple animations. The way I see it is that this is all about Flash-like banner ads onto iOS, which is an area that Google makes a huge amount of money from.

According to Adobe, there's already over 100 iPhone apps in the iTunes store made with the private beta of Flash CS5. So Apple currently isn't being selective enough. It seems without Adobe advertising which apps are made with Flash CS5, that users aren't noticing the difference between them and apps made with Objective-C.

Here's a developer who just got his iPhone app made with Flash CS5 approved just this afternoon: http://twitter.com/james_eberhardt/status/11850738164

It's not going to be a problem until the new agreement comes into effect (which I've read that you have to agree to by the 22nd).

Well, that could be a problem since Apple's new agreement says "Applications must be originally written in Objective-C, C, C++, or JavaScript as executed by the iPhone OS WebKit engine". So if the code is written anything but those 4 languages, then the resulting app is breaking Apple's new licensing agreement.