The article doesn't come remotely close to suggesting that.
I feel entirely safe in saying "NO".
Why? If you can run swf file through something on iPhone, then ....
This probably refers to the Flash CS5 HTML5 export which was announced a while back.
There are also a few other services out there for getting Flash on the iPhone.
One is a cloud type service that does some type of conversion on the fly and then transmits the submitted feed to the iPhone app. I assume this would work for video only; not interactive stuff. I don't remember the name.
The only FLASH that'll be on the iPHONE is
"Apple unveils thinner iPhone 4 with front-facing camera, flash"