After reading more about the whole Adobe announcement, they really seem to be pushing SwfObject 2.0. Why? Simply because it not only makes use of Javascript, but uses the older embed tags that we used to make use of before the whole IE "Click to Activate" issue.

This may also seem familiar if you publish an HTML file directly from Flash. It not only uses JavaScript, but has a no-script area that uses the older embed tags. To my knowledge Flash has already been doing this since Flash 8.

The problem with doing this is that it doesn't allow you the opportunity to make a search engine friendly version of your site. I know that this is the purpose of the Adobe announcement, but it is unproven technology. Additionally there is no way for a developer to test it or program Flash to have things show up properly in Google or Yahoo.

Currently creating an search engine friendly version of your flash site affords you the ability to have control over the way search engines will see your content. It also affords you the ability to create a non-flash version of the site for users that don't have Flash at all. So in theory you are creating a highly accessible version of your site by using .NET or something similar to transform the XML and assets that are used by the Flash into an XHTML version of your Flash.

It isn't all about search, it is also about making your content accessible to everyone, even those that don't have Flash.