This came up on FlashMagazine.com recently and I only saw it today.

Cooties is trying to kill Flash by using HTML 5 to recreate the Flash IDE to create animations that you can export and play in the iPhone/iPad or any browser that supports HTML 5. It's in its infancy right now, but it is looking good. The main problem now is that it's too big (the library itself is close to 300kb) and it doesn't has features like UNDO and what not, but given time, I'm quite excited to see how this app will turn out.