A beta version of Flash for mobile devices is on the way according to Stephen Shankland on CNET.
It will be available for a number of platforms but, notably, not Apple's mobile devices (iOS). It addresses some of the issues of moving to a non-mouse environment and deals with power issues. Some developers will still need rewriting to adopt it.
I'm sure Apple's argument will be "If you need to rewrite anyway, why not move to HTML5 which is an open standard."