I think the real issue here is the longer term relationship between flash
and svg and for Adobe having a credible graphics library for hand-helds,
mobile phones, imbedded devices, etc. By joining together they can
eliminate some confusion between do I use flash or svg and at the same time
get them selves ready for Microsoft's coming xaml with the release of
Longhorn, (avalon).
Flash and SVG are real-time vector graphics so is Microsoft's new OS. What
happens to Macromedia if they were to loose the battle or to Adobe if they
never tried to even win?