The Folks at Engadget have posted a nice video comparison between the HTC Desire running Flash Lite and the Nexus One running Flash 10.1 Beta and it looks like the Nexus One with the latest FroYo upgrade has better overall Flash performance compared to the Desire.
Watch the video below for the proof.
Some may find the test biased coz the Desire is running on Android 2.1 while the N1 is running on 2.2 but the Desire has still not got the 2.2 update ! But one thing is for sure. Android is headed in the right direction !