According to Ryan Stewart and the Wall Street Journal, Flash will be pre-installed on the Apple iPhone.
I'm surprised that I didn't see links to this flying all over MXNA yesterday, as I would think that most Flash developers would be really excited to have the ability to publish to an estimated 2 million new handheld devices within the next year. This will significantly increase the installed handheld user base, and very quickly.
It looks like there are still some questions floating around about who exactly is developing the player/plug-in (Apple or Adobe), but this could be a great platform and might even convince me to pick one up and ditch my Treo 700w.
[Update: Gizmodo has a post suggesting that the Flash player will be there for sure, especially since the NYTimes.com page they use for all the TV advertisements shows the Flash video player as loading just fine. Looks like a good clue to me! (via i2fly)]
[Update 2: Mike Downey from Adobe has a good post on the subject, but as we all know now that the iPhone has actually been released: there is no Flash support. I'd bet the farm that there will be soon, however.]