I think you should read this press release from Adobe.
The introduction is the most important part :
an integrated technology platform and runtime environment for personal computers (PCs), mobile handsets and consumer devices
Some times ago, I write a post on an Richard Legget's article 'Future of Flash Lite'.
Add to this an old post of Ted Patrick on Tamarin :
tamarin-tracing is a VM for constrained environments (read mobile and devices) so that just about anything with a CPU and memory can execute ActionScript 3 Bytecode under low memory and low CPU conditions
I'm now sure Flash Lite will 'soon' disappear to be replaced by Flash.
We'll see what 'soon' is for Adobe ;)
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