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Adobe's FAQ about this is here. Hat tip for CL for finding this.

To quote:

"Adobe is working with Google and Yahoo! to enable one of the largest fundamental improvements in web search results by making the Flash file format (SWF) a first-class citizen in searchable web content. This will increase the accuracy of web search results by enabling top search engines to understand what's inside of RIAs and other rich web content created with Adobe Flash technology and add that relevance back to the HTML page."

OK...so, where's Microsoft and Ask in this? Ask don't have a lot of search volume, but MS are definitely trying to grow theirs. Do I smell a conspiracy - have Adobe decided to not invite MS to this club, because of Silverlight, Redmond's attempt to compete with Adobe Flash? Not sure the regulators would like that...

Also - will this really add a lot of value to web search results, at least to begin with? Most Flash files don't contain that much information to aid results quality, and designers aren't the best people to be adding this sort of textual information to help with SEO - will we see amateur attempts at old fashioned keyword-stuffing?

I'm glad our design team, Open, work closely with our Steak SEO team, and think about SEO, usability and good design at all times - and remember that sites exists to generate a return, not just look good. We like things that look good, though!

I'd like to think this a major step forward, but it doesn't address a more important issue: designers and agencies who build sites in 100% Flash, and expect SEO teams to fit a layer on top to give the site rankings. That's still bad practice. If this was an announcement of image recognition technology, now that would excite me.

IMO a good site design will use Flash in moderation when it offers functionality or a visual experience that no other technology can offer. Not because Flash is the easy way out or their only skill. So as Google say "Try to use Flash only where you need to".

Updated: typos