another problem with flash is that search engine spiders cannot read your content, so they cannot rank you very high in the search engine because there are no words to spider through. its all just images (which cannot be read)
however, In one of my news emails this morning I did get one saying that google can not read flash content. I've only heard that from one source so far (I must admit that I havent looked very hard to confirm it - because I am of the 'flash = tool of devil' thought).
also flash tends to destroy the ability to use the scroll wheel and the back button, which is a big no no.
you are right it does look 'neat', unfortunately it seems like you have heard from two people who dont like flash