This is what I was waiting for – FileReference Runtime Access! To quote the original blog post:
“This greatly lowers the bar to using Flash as a photo editor, document manager, customized application experiences, marking up content and saving locally, all without the need for server side script.”
And then: “It is only beta (Flash 10) but there are great market opportunities to prepare for when this launches.”
Flash is just getting better.
Also, do check out the other great posts from http://drawlogic.com