Yes, today is the day we thought would never come. iOS users now have access to Flash video, thanks to a $2.99 app in the App Store. Skyfire is the first app with this functionality to make it through the App approval process (CNNMoney). 75% (ish) of online videos are encoded using Flash, a fact that has been a thorn in the side of iOS users for quite a while now.
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Apple has been hesitant to work with Adobe to integrate Flash functionality due to the fact that Flash tends to cause a lot of errors / crashes on Macs. Jobs wants the iOS user experience to be as seamless as possible. Skyfire manages to work by rendering Flash video into HTML 5 and then displaying it in iOS. With any luck, this will mean fewer Flash-related crashes.
Games and non-video Flash content will still not work on iOS devices.