Mark Horsell discussed shortcomings of Flash Lite he experienced:

• Isn’t a develop once use everywhere technology. Devices have different capabilities, and whats worse things that work in the emulator dont always work on the device.
• Performance on devices generally is poor, so forget complex motion graphics.

He said, “have to wait for widespread use of 3G, more powerful devices and Flashlite 2.0, i think that could take a couple more years yet!”

Surely the market of Flash Lite is now not there yet. I’m also waiting for news from China 3G. Performance is always depending on hardware CPU/Memory, lite is lite, wouldn’t be same as computers. It’s better to sell good services with better user experience in mobile, but not to try magic of bitmapdata.