It's my understanding that IOS 5, which will be released in Oct will include Flash support.
I'd be surprised to see Flash 11 support in Safari under IOS 5.
I know that Air 3 support will be there because it's there now under IOS 4.
I think a lot of people would be surprised to see how many thousands of games for the iPhone and especially the iPad were written in Flash/ActionScript/Air. Some of the hottest iPad games are well-known to have been written in Air/Flash:
Flash 11 and Air 3 add a new 3D capability that is very nice. If you write 3D code to the new API, it'll use 3D hardware on the target platform if it exists and emulate it in software if it doesn't. This brings 3D capabilities to many more developers.
I'm working on a new, simple anchor alarm in Air right now (it's not 3D). For me it has the huge advantage of allowing it to run on the iPhone, iPad, and Android phone/tabs with the exact same code - zero code change. It could easily work inside a browser or on Windows/Mac too except they don't have native GPS support like iOS/Android does.
An anchor alarm is a great example of something that fits Air/Flash really well in my opinion. It only needs to do an update once a second which Flash can easily handle. Also, no one would use it, especially overnight, without plugging in the device.
I hope to publish the apps in the Apple App Store and Android Market. And of course, they'll be free.