I think the app store would still be a big thing because it would still be the easiest distribution channel. Even if there was good flash support, there would s

I think the app store would still be a big thing because it would still be the easiest distribution channel. Even if there was good flash support, there would still be the issue of developers trying to extract revenue from there apps. The app stores give people easy access and instills a quick impulse buy mentality which would be hard for someone developing for the iphone independent of the app store to achieve. Performance for some graphics intensive apps I'd imagine would never be as good just because no matter how efficient flash becomes it would still be an extra layer things are being ran on.