Flash Player will run on any handset with FroYo. Both should be available in May. FP is hardware-optimized when possible, hence the dependancy on FroYo.
Bowler Hat's GridShock was being demoed on a Droid as a native APK (just like the iPhone Packager). I forgot to check the Android version, but it felt slightly laggy.
I think I heard AIR (the Android Packager) should ship around September.
Awesome Android devices will ship this year, including tablets.