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I've been meaning to post about this all week, but it looks like the iPhone game/app market is definitely going to be an even busier place once Adobe Flash CS4 is released later this year. With the latest version, you'll be able to deploy your flash project onto the iPhone / iTouch as a compiled native application.
http://labs.adobe.com/technologies/flashcs5/appsfor_iphone/
There are countless (and many of which are great) flash games out there, and there's no doubt that many flash game devs will be more than eager to bring all their games over to the iPhone.
A pretty interesting blog post up by the developers of Tap-fu on iPhone piracy. They've been looking into how many people illegitimately downloaded their app with data captured from their scoreboard feature, and the conversion of those pirates to legitimate purchases (zero percent, unfortunately).
http://smellslikedonkey.com/wordpress/?page_id=274
They also briefly describe the pirating process , and it was surprising to read that getting a game is even easier process than purchasing it on iTunes. :/
Considering the amount of data and stats that Firemint have captured with Flight Control, I'd love to hear about any stats they have on pirated copies. I'm sure that'll definitely be an eye-opener, considering Flight Control and Real Racing are much more well known games.
A pretty good solution mentioned by the developers is that micro-transactions could help solve the problem, with developers releasing the base game for free. Hopefully Apple make some precautions so that the process of copying DLC from microtransactions isn't so easy.