On Marc Canter's recommendation, I am playing with Laszlo today.  It's basically a Flash-based application server/development tool using LZX, an XML-based language, to describe to the application.  It's somewhat like server-side XUL with ActionScript embedding.  A Java-based servlet eats LZX and spits out SWF.  Obviously, Laszlo has to do a lot of smart fine-grained caching for performance. 

Although I had a bit of trouble during installation (Radio was using port 8080 unnecessarily and one part of startup configuration was hardwired to default installation location), but it is running now and looks great (except for that UI feedback delay in Flash-based UIs reminiscent of videotext UIs).  Cool.  I like it so far.  I'll tinker with it over this weekend and report back.

Thanks, Marc.  BTW, you are absolutely right about that damned Timeline.  Macromedia executives need brain transplants IMHO if they think a thick coat of makeup and a new product positioning statement will work.  Nothing short of deep soul searching, bareassed understanding of developers' needs, and willingness to invest time and resources long overdue will work.

As to Macromedia stealing Laszlo's idea, I don't think there is anything wrong with recognizing a good thing and embracing the ideas behind it.  Besides, I had a similar idea a while back.  What I don't understand is why Macromedia didn't buy Laszlo.  Laszlo obviously has good people with good heads and the ability to execute.  Why bother mimicking when you can get the original and extend it?