JD blogged today about a presentation Intel gave at the Intel Developers Forum where they formally announced that Adobe AIR would run on mobile phones with Intel's new low-power x86 mobile chips.
While this is a very nice addition, I doubt this means the end of Flash Lite as there will still be phones with less processing power for quite awhile. However, it is a very welcomed step in the right direction.
There is more information about the presentation on PC Magazine and ZDnet's websites.