No they didn't. I was on the CAB (community advisory board) at the time (from the community side, received an invitation due to being very active on several ActionScript forums etc.)
What was happening is this: Adobe inherited Flex Framework from Macromedia. It was atrocious. Bloated, slow, unusable for games or simple interactive applets which made Flash popular in the first place. They tried to market that for creation of admin tools like what VSPhere used to have. The community was crying and complaining to Adobe that they aren't making any effort to support what Flash was good at.
Then smartphones appeared. And Adobe's engineers came up with Flash Catalyst. Conceptually, it was supposed to work similar to Flash or Fireworks, but it was supposed to render its output into generated Flex Framework code. Tons of unjustifiable bloat. Everything was too slow and too big. And whenever the people able to get their hands on the preview complained about it, the answer was always "it's not going to get faster / smaller".
Catalyst came with templates for "typical" phone apps and they were a disaster to deal with. So slow users would probably understand them to be simply broken / frozen. Oh, but Adobe assigned a bunch of career managers to these projects. People came made a lot of promises and got promoted into another department. It was painful to watch.
At the same time, I wrote a project that I called "Frameworkless MXML", it was more of a demonstration than an actual useful library, but the goal was to say that the original inherited framework might be stripped off a lot of bad components and made to be a lot faster and smaller. But it was just that, a PoC that never went anywhere.
I had no interest in working with Flash on smartphones because I see smartphones as proprietary jails and am not interested in contributing to that market. Few people in Flash OSS community probably also felt distaste for the smartphones... and the vast majority were the "non-contributing" users. They waited until the tower completely crumbled and jumped ship.