Skyfire has a trick up its sleeve. It doesn’t fully support Flash, it just converts Flash to HTML5 on-the-fly through Skyfire servers. It doesn’t work with any “interactive” Flash files, such as games etc., it’s only Flash-based video that’ll work. MobileCrunch tested a preview version and found playback not to be completely smooth, but it apparently works fine on Android so it’s probably going to work fine on iPhone too.
Adobe claims (or used to claim?) that 75% of all online video was in Flash but a recent study by Mefeedia shows that over 54% of the videos are in fact HTML5, compared to 26% in May 2010 and just 10% in January 2010. A huge boost for HTML5, mostly thanks to mobile devices supporting – and needing (iOS) – HTML5 for most video playback.