Tom Landspurg wrote a good piece, his perspective on Flash Lite, check it out – Another Flash from J2me developer perspective (Part1)
From the Flash Lite website:
What Is Flash Lite? Flash Lite is the Flash technology specifically developed for mobile phones and consumer electronics devices. Flash Lite dramatically accelerates the delivery of rich content and browsing, and customized user interfaces. Designers and developers now have a new level of expressiveness, efficiency and interactivity for content creation.