You're right in the sense that Flash and
SEO really don't mix, but I have come to the opposite conclusion.
SEO has forced me to become really creative in other ways. I've had to learn CSS inside and out. I've started using technologies like SIFR. If you don't know what that is, look it up, it's great! I've custom built a
SEO friendly content management system that really made me think outside of the box. But as far a graphic design is concerned, I don't hold back. I lay it out in Fireworks( and I'll be glad to argue Fireworks over Photoshop anyday concerning website design) without thought to
SEO and when I'm slicing the template and making the associated HTML, I then have
SEO as a #1 priority.
Granted, most of us aren't dealing with the Nike's,Sony's and other big brand names that don't have to concern themselves with
SEO at all, but I rarely say to myself "Can't do that, its not
SEO friendly" as their are always ways to make it work both creatively and search engine wise.