This looks like a pretty interesting alternative method to get Flash on the iPhone and iPad. From what I have read it sounds like it’s slower that regular Flash especially when it comes to interactive stuff like games. At this point it’s probably good for ads.
Smokescreen seems to take an SWF and convert into an SVG file and ad some javascript, so the end results are compatible with iPhone and and iPad.
Thanks to Karaminder for pointing me to this.