Oz here, we've been working on something really cool for the past few months, and I'm really excited to finally introduce it. I think (and hope) any Flash dev who likes iPhone development would appreciate this.

It's called Pixelwave. Pixelwave is an open-source 2D game-oriented framework for the iPhone based on the Flash API, written in Objective-C.
It provides the same interface as Flash when it comes to managing the display list, listening to events, loading files, animating things, playing sounds, etc.

So if you know AS3.0, it should be very intuitive to pick up.

This whole project came out of the need for a better 2D framework for the iPhone back in mid-2009 (Nostalgia: http://board.flashkit.com/board/showthread.php?t=797815). And since we love Flash, this is the only direction we could have taken it in
It all started as a small internal project, and evolved into a serious framework, and I think the community can take it even further.

Our main focus has been ease-of-use and performance.
- We pretty much implemented the core display architecture of Flash in C, and named all of our classes and functions after the AS3 API... can't get much easier to use.
- We also made a lot of intelligent optimizations on the core OpenGL level, so it's FAST.

Some big features:
- Flash-like API (using addChild, displayObject, x/y/rotation, graphics, etc...)
- Super optimized OpenGL rendering.
- Simple event dispatching model, just like Flash.
- Handles native iPhone features with style. (ex: Listen to touch events just like you would mouse events in Flash, very intuitive)
- Native vector drawing (via the Graphics class)
- Text rendering support
- One line texture loading, supporting many different texture types
- Simple sound playback

We'll also be including PixelKit, a sub-framework which contains game-related classes like a resource manager, a tweening engine, box2d bindings, etc.
On top of it all we've been working on tools to help convert Flash MovieClip over to an OpenGL-friendly format, but we'll be releasing that later on.

I just put together a long post on our blog explaining everything in much more detail, and giving some code examples. Read more here

This framework is going to enter private beta soon, so we're looking for Flash devs who know some Objective-C (Or are willing to learn) to help us test it out. PM me if you're interested, or email us.

Do post your thoughts, and if you plan on attending 360|Flex (In March), or 360|iDev (In April), I'll be speaking at both and demoing all of this, so say hi if you'll be there, or just drop by (always nice to meet fellow members in person).