Flash running on the Nexus One is no real surprise. Google has been working with Adobe for years to make Flash more indexable in it’s search engine. Everything performed well in the video, but it’s a video it’s suppose to perform well.
Will Apple start to allow Flash on the iPhone? Maybe?
Google is a huge advocate of web standards. Their search business model depends on an open and indexable internet. Perhaps they feel that the Adobe Flash 10.1 Player finally meets the minimum standards for a good net citizen? Or perhaps they have much less controller over the Nexus One, than Apple has over the iPhone and this is a concession to HTC? Both questions are speculation at this point. What isn’t speculation is that Apple has a worthy competitor to it’s iPhone and it runs Flash.