The Flash runtime for Android is supposedly still an optimised version for the mobiles, but the first in line (the HTC Hero) would have the complete capability to run Flash videos as well as support streaming audio and ActionScript 2.0. Adobe does mention extending the full Flash player to the Android platform, but that would only happen sometime in near future. My guess is, with the Flash Player 10 for smartphones soon being available in beta for us during MAX this year, this Android smartphone should not be far behind.
What’s also a great for developers is, HTC is now a part of the Open Screen Project initiated to reach the maximum platforms and devices with the Flash player.
You can view this video showing demos of websites on the Android handset. It is very clear from the video that a lot of the web based Flash content which was earlier not viewable on devices would now be available. A clear instance are gaming websites like AddictingGames or Kongregate whose games (AS 2.0 based) would now be playable without porting it as a separate mobile build.