Adobe announced that they will donate their virtual machine software to Mozilla, to work on as an open source project. Mozilla will use it within Firefox (by the first half of 2008) and Adobe will continue to use it in Flash Player 9. The name of the open source project is Tamarin and it will be governed and managed by developers from Adobe and Mozilla. News.com calls it "the largest code contribution yet to the open source Mozilla Foundation". As Kevin Lynch, chief software architect at Adobe, told news.com: the move furthers the company's plan to allow developers to mix and match programming technologies, including AJAX-style Web development and Flash for media and animation.
I foresee this as a bold move to the inevitable...making photoshop, flash, and dreamweaver web applications. Its a ways off, but I think that eventually all applications will be web-based. Heck, computers will likely end up being just an internet host...and all file management will be hosted (and backed up!) online.