Vuzit itself looks like a useful service. What I am not clear on is what value someone would get from writing their own viewer to embed in their website when that seems to be the hardest task they would be "outsourcing" by using your service. Is it to customize the look and feel (possibly by using a technology like Flash as you suggested)?
It's great that you guys have an API. I'll take a look at it when I need to embed docs on a web page.