I can't speak for the droid, but it functions PERFECTLY on my Nexus One. YES - there are some aspects of Flash that are cumbersome on a touch device, think things like gaming and Flash content with a lot of buttons. But in my case, I have flash set to load "on demand", which means I tap a Flash object to load it. Things like music player, streaming video, restaurant sites and more just work perfectly.

You will never get a desktop experience with flash on a smartphone, but it sure beats the alternative.

As to the comment about a story about Flash being so useless - with millions of Froyo powered devices out there, and with Flash being one of the top downloaded apps in the market, don't you think that a poorly working flash experience would have made the news a bit more?

Video is always going to be an issue, especially when the source video file was not encoded to run on a mobile device. If you find a Flash applet with 1024x video, there is no phone that'll run that smoothly. But video in lower resolutions plays fine. If the expectations were that Flash would run just like on your quad core desktop running Windows 7, then yes - flash will disappoint you. But I don't think anyone in their right mind can expect a smartphone CPU to power desktop grade flash apps.