I think they've done another great job with Flash Media Server. The socapp stuff and pips are nice and what you'd expect these days.
You've been able to do this stuff for a while with Flash Communication Server (they changed the name recently) – record audio. And you can do alot with videos too (see Stickam.com : another group of FMS widgets manifested).
Now we're seeing the FLV format break into the mainstream, thanks to the great On2 codecs (and the great work from the WildForm Flix team) and YouTube and GoogleVideo etc. It lowers the barrier to entry for web video, as there are so many Flash players out there granted: for web use, though.
Adobromedia must be feeling quite happy the way things are panning out, what with Flash video and also the slowly solidifying mobile platform they have.
What we now need are Flash apps like this, that enable easy media recording and publishing on devices like the Origami. Then, we will see some incredible things happen. It will be so easy to create and share multimedia, that we'll need better ways to store, organise and share that which we will all consume and create so readily, in the future.