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I am by no means an expert in this area but have done some flash work in the past so here is my take ...
In a nutshell, it's a way to get animation, interactivity, and rich content to the web. It's often used to create web based games, banner ads, interactive forms, photo galleries, animations, and all kinds of things for web use. I think the reason some will advise against the use of this technology for a business website is because many popular devices like the iPhone and iPad inherently do not support it. Since it's not supported, potential customers cannot see your content. More and more, people are using these devices for everyday surfing (I know I now use my little Pixie phone more for surfing than my desktop) so if you are putting out content that can't be seen by the device of choice, well, you may lose some potential customers.
If you decide this is an issue, there are alternatives to deliver rich content to the web so you just have to look for options that aren't Flash based. (This is where I KNOW I am no expert so can't really offer a better suggestion.)
Hope that helps. If nothing else, you have some new terms to take to Google.
One thing he does not mention (that I can see anyway) is that jquery is much less likely to crash a browser.
Yeah, I thought that was the case, but when I opened your page at work (which blocks flash) it told me I had to install flash to see the album on the link..
So, does a web browser see that as flash? Now I'm confused (not that knew much about it to begin with!)
EDIT: I think I figured it out, my browser doesn't have java installed which would make js inoperable, right? That's where i was confused.. I think.