Macromedia strategy moves to web services model

The NY Times article, "Macromedia Lays Out Strategy for More Uses for Flash Player", briefly talks about Macromedia's strategy for MX, which I'm only now starting to get. Apparently, they want to ship an MX suite (Dreamweaver, Flash, and server software), that will allow developers to create web applications that pull data from the server, rather than creating static Flash files. Not entirely sure how this differs from using Generator and what the web services model really means in MX, but am interested in seeing how this pans out. Maybe someone will enlighten me with a diagram some day.