Yes, flash can be done on the iPad. Of course, this appears to only be for advertising, but it is a step. Advertising is going to be crucial for app makers on the iPad, especially free apps, so it only makes sense that ad agencies are preparing for the onslaught of requests they will undoubtedly receive.
Greystripe, a mobile ad-network announced “iFlash” which will bring flash ads to the iPad and iPhone. The network has had much success with flash ads in the past on the iPhone and is looking to bring that success over to the iPad which allows free app makers able to continue without charging. These new ads will have more screen real-estate while still preserving the usability of the apps on the iPad.