Google and Yahoo peek inside flash with help from Adobe
"[...] Adobe has been working to make Flash more index-able by search engines. Google has recently rolled out better code for Flash, e.g. you’re now more likely to see useful snippets on Flash pages in Google’s search results." (via).
While I think this is a good step, I think there are many other aspects to be considered with Flash. Search engines being able to see inside Flash still doesn't solve browser related issues, nor does it index contextually as your page with actual HTML markup would. Content areas inside of flash have no organization like a raw HTML page. How will search engines index keywords as more important than others? These are big factors to SEO performance and it will be interesting to see how they are handled (maybe this is already in the works?).
Here is an example of results in Google, appropriately marked as FLASH. However, browsing through a few random pages of those results shows that the text that they see inside of the flash file looks like gibberish. There is no structure.