There aren't a lot of details, but Adobe sounds confident that they've made Flash pretty usable for touchscreen Android devices.

From the second video here: http://androidandme.com/2010/02/news/adobe-teases-us-with-fl...

"From a developer perspective, there's nothing that I needed to do to ensure that my game is functioning on this [touchscreen] tablet device. It operates the same as it does on the desktop or on this tablet device. Obviously the inputs are mapped, and that's taken care of automatically by Flash player. So Flash Player is able to bring hundreds and thousands of casual games that [are] online from day one." (Emphasis mine.)