According to the same source who talked about Sony's plan for making an EyeToy / Rev-type controller combo for the PS2 - in order to compete with Nintendo's upcoming Revolution - Sony is also working on making Flash Lite available for PlayStation 3 and PSP:
One of our readers who claims to work for Adobe/Macromedia sent me an email and had this to say about PSP (and some interesting PS2 news too):
“Sony are prepping our new mobile ‘Flash Lite’ platform for PSP and PS3. They intend to combat XBox Live Arcade with downloadable flash games to your PS3 and PSP. They understand the potential of Flash Lite since the development costs are low and we have a DRM solution in place so online content delivery is taken care of.
That would change the game completely. Using Flash instead of full-fleshed c/c++ compilers and IDE's will definately reach a larger development audience.
This is excellent news, in my opinion. Having done quite a number of Shockwave games and applications - I'm just looking forward to this (possible) new distribution channel and platform.