I have had a few interesting discussions lately with marketers who were arguing that they would not use Flash due to its lack of support with SEO. Granted, they do have a point that Flash lacks in the SEO category, even taking the new SEO capabilities into consideration. However, what Flash lacks in SEO it makes up 10 fold in user experience, which in my opinion is much more important.
You can put all the time you want into optimizing your site for search engines, but if users do not have a good experience then you've gained nothing. I would much rather put that time and effort into creating an interactive and satisfying user experience that will draw viewers in and keep them there. With any luck, that experience will stick with them and may even get passed to their friends, starting a viral frenzy.
Viral frenzies aside, I realize that you may take a hit on the total number of people reaching your site if you use Flash instead of focusing on SEO. However, the highest total number of visits should not be your goal. If thats what you want, you might as well just buy a list of e-mail address and spam everyone with crap. Sure they will see it, but they won't remember it and they will move on. On the flip side, if you reach fewer people, but give them a lasting experience then you will be more likely to convert them into loyal customers. This is where Flash shines and this is why it should not be overlooked.