Flash Lite works well...I think it has to do with the Snapdragon. At 1ghz and higher, it should be fine.
I could be wrong, but I do not think Flash Lite will try to load a full flash page, just the ads on the side and dedicated Flash apps (like cheesy games). Google gets its money from ads so I would guess that's why they pushed it for 2.1 and why they want the mobile Flash for Froyo.
Oh, and let's not forget, screw you Steve Jobs for trying to decide what is and is not good for me. /rantover