Just a note: this is not a technical paper on web development, it speaks in simple terms for those looking to understand basic options and uses for Flash Websites.
If Flash web development is not so SEO Friendly, are we stuck with static pages? Not exactly. In the last couple years there have been great developments in (and acceptance of) javascript, XHTML, and CSS. The Shannon-Rose Design website, for example, uses no flash at all (other than video players), but has some minor animation.
There is also the option of a hybrid site, that uses flash and HTML working together. You can see a good example of this at www.visitmontgomerycountyny.com. In that site you will find a Flash interactive map, connected to a database, with links off to SEO friendly HTML pages. This is a complicated yet very workable solution. (we also built a full set of content management tools for that site).
Flash serves a purpose, but is no longer considered a heavyweight contender for web development platform. When to use it simply depends on your needs.
Posted by Richard Kline