You should have different assets for very different resolutions anyway. E.g. small details look good on a desktop screen, but obstructive when scaled down to mobile resolution.

I know a few people doing Flash on embedded devices. They tend to steer away from vector graphics and lean toward bitmaps because there's a performance hit.

I was referring more to the UI design aspects of it - on a small touchscreen, the interface design should be different than an application written for the desktop.

Larger touchscreen friendly buttons, smaller fonts, more tabular displays of data, etc.