While iPhone developers are trying to compromise with the latest updates in the iPhone’s SDK ToS (regarding Section 3.1.1), Google is working with Adobe bringing both AIR and Flash to Android.

Google believes that developers should have their choice of tools and technologies to create applications.
Andy Rubin, Google VP of Engineering, Android

In a blog post today, Andy Rubin announced that Google is partnering with Adobe to bring the full web, great applications, and developer choice to the Android platform.