Adobe has released a lengthy piece about Flash 10.1 coming on Froyo. Here are the highlights:

  • Battery and power: We added a new capability called instance management to intelligently load and play back Flash content only after it comes within view on the web page. This capability also allows us to work in conjunction with the browser to ensure the web page is loaded as quickly as possible. ... A related capability we added is called pause and resume. Flash Player will automatically pause the content that is running when the browser is hidden from view or the current tab is placed in the background.
  • Maximizing performance: To take advantage of these highly integrated hardware environments, we took a very comprehensive look at how Flash Player uses the CPU, GPU, memory, and storage. The Flash Player team, with engineering cooperation across our Open Screen Project partners, meticulously optimized the machine instructions used in our virtual machine, rendering engine, and media codecs to run efficiently on mobile hardware. ... The investments we made in execution speed will be apparent in a broad range of content, from Flash applications to games to video, and everything in between. We took an extensive look at the performance characteristics of Flash Player in many different scenarios and drove considerable improvements in the execution speed.
  • Conserving memory: We have added automatic compression of media in memory to matchthe typically smaller screen size and color depth of a mobile device. We have also enhanced the memory garbage collection system to work more effectively, particularly in low memory situations. We made changes to more aggressively release temporary buffers and media caches for images and audio data. These changes have translated into some dramatic improvements. In some cases, you'll see content that now automatically consumes 50% less memory with Flash Player 10.1 when compared to our previous release.
  • Usability: Multitouch is included. It also has smart zooming and knows when to go full-screen. Text fields will know whether to use soft or physical keyboards, and the accelerometer is fully functional.

That's it in a very brief nutshell. Get the full rundown here.