Where does Bluestreak fit in with all this? I worked with it a little while back. It's a full Flash player for mobiles (they only had a Series 60 client as I remember), their main selling point being that Flash Lite is too limited whereas they could render anything that could render on a desktop. I think they started on Set top boxes and figured that mobile was the next step for them.
I wrote SWF files using Flash with some extra APIs for native device calls (like SMS and call handling) and it ran them quite impressively. At the time I didn't really understand how they could do that - I'm pretty sure they didn't license anything from Adobe.
Anyway, sounds like this could knock the wind out of their sales (ahem).