Is it? I remember that even a similar pocket device such as PSP was able to play flash at the time, despite it being a huge memory hog. Until iPhone, any similar device that couldn't run flash was perceived as, simply, buggy.
The PSP had a very outdated version of Flash (for the time) that wasn't compatible with a lot of content.
It did work sometimes though, and it was great when it did. The Wii—while not portable—also supported an (outdated) version of Flash that I recall working quite well. There were even some Flash games explicitly designed to be used with the Wii Remote (although they couldn't really do anything special, they only had access to the IR pointer).