That being said, Google announced that they are able to index and use "almost any text a user can see as they interact with a SWF file on your site." Google said:
Currently almost any text a user can see as they interact with a SWF file on your site can be indexed by Googlebot and used to generate a snippet or match query terms in Google searches. Additionally, Googlebot can also discover URLs in SWF files and follow those links, so if your SWF content contains links to pages inside your website, Google may be able to crawl and index those pages as well.
I wrote a bit more on this at Search Engine Land.
In short, it does not mean you should build your site fully in Flash. It does mean that Google is better understanding Flash and the content and links within those files.
Forum discussion at Search Engine Watch Forums.