If your application want to access phone's file system(r/w), or want to access phone's camera, FlashLite alone wont help. [its only possible with a java or python wrapper]
From my personal experience Flashlite is most suited for making quick visual demos/prototypes [within hours].
Right now Adobe is working on Flashlite 3.0 , which is expected to be the most robust release ever, complete with flv video support.
One great thing about flashlite is that, if you build and test on a single device, you can deploy it on ANY flashlite enabled device without any change[subject to some device factors like support for screensavers, wallpapers etc.].This 'build once, deploy anywhere concept ' is unheard of in J2ME development world.