Flash on the iPhone a reality

Hot off the press from Adobe is this latest press release announcing that later this year developers will be able to use Adobe CS5 to produce applications for the iPhone.
 
Adobe says that Apples SDK terms prohibit any runtime interpreted code (swf + player). iPhone applications developed with Adobe CS5 will not contain any interpreted code.  I assume this is similar to exporting a 'projector' for PC/Mac, which is a standalone runtime containing the code and the player in one package.
 
On the one hand, fantastic news for Flash developers.  On the other hand, you can just imagine the explosion of applications on the app store.  Consumer choice is good, but in all likelihood 90% of the content will be sub-standard quality...