People have finally started using it for what it was made for, which is video content and gaming platforms (plus the other odd innovation). Beats crappy button rollovers and simple “FX!”.
I think people got really excited when it first came out, but now that things have calmed down there is more of a focus on elegance and usability instead of ignorance and excitability.
I think the web has improved, but that doesn’t make Flash irrelevant. Just better used.