Nokia MID series
Don't forget the N770, N800 & N810 series of MID's from Nokia. These do run Flash, have a solid AJAX browser (gecko engine) and high enough resolution screen (800x480) to give a decent web surfing experience.
These device are ARM powered, and having owend one for a year, they are just that bit underpowered. Anytime I hit a website with complex Flash or significant Javascript the surfing gets painful.
I'm sure that part of the problem is OS/browser optimisation, however the ARM chip does need more processing power for living with Web 2.0. That is the open door Intel may be able to walk through. Can ARM respond in time?