Flash doesn't really do a whole lot for people yet since its a beta version and the movies are really choppy/audio is off. But give it time and we will be able to stream full movies Netflix style on our phone's whenever we want
Because it makes browsing the internet a 'complete' experience. We are able to browse the internet, any webpage we want, and not miss anything because the webpage developer did not make a mobile version of the page. We talk about watching movies and playing games, but I think it goes beyond those 2 use cases, and settles more firmly on the full experience of browsing the whole and complete web.
Flash on my Nexus One came in extremely handy as I was leaving the Suns game yesterday and wouldn't make it to a bar to watch the UFC Main Event (Jackson vs Evans). I just navigated to atdhe.net on my phone and watched til I got where I was going. Boring fight though.