Adobe has finally publicly acknowledged their very important problem with SEO and Flash and has made an effort to make Flash content easier for search engines (specifically Yahoo! and Google) to index by collaborating with both Google and Yahoo!.
From the press release:
Adobe is providing optimized Adobe® Flash® Player technology to Google and Yahoo! to enhance search engine indexing of the Flash file format (SWF) and uncover information that is currently undiscoverable by search engines.
Read more in the press release
While I do see this as an great thing, I would still recommend developers use SWFAddress to ensure deep linking to your content. I can see how both search engines would be able to pick up the content properly, but it would surprise me if the indexing is able to tell a user where that content lives within the site. It will be interesting to see how the content is indexed.