I design and develop Flash lite applications here in Tokyo. We have been uploading Flash Lite 1.1 on the official websites of our carriers in japan for about 2 years.
Just last week, Flash Lite 2.0 came out on the KDDI AU phones. I was hoping for AS2, but now it only has AS1. Seems to export better as Flash 5, 6, and 7 instead of the FL 2.
We cant use the "left" key and only downloads up to 100Kb on the phones so games are really not a big hit here. maybe later.
If any of you have questions or suggestions, please feel free to chat with me!