Apple and Adobe have both been taking a lot of heat for the fact that the iPhone can't display Flash content. The fact that the iPhone handles everything else (including JavaScript animations, etc.) so well really only adds to the frustration.
Toshiba looks to be trying to capitalize on this often-vented frustration by releasing their own device, which is supposedly going to support Flash.
The new TG01 device runs Windows Mobile, though. Plus one point for Flash, minus one point for Windows Mobile.