Two months ago Google announced that they had started using a special build of the Flash Player that could “explore Flash files in the same way that a person would”. That would make it possible to index Flash websites in a whole new way.
The competition was to create a Flex application that would appear at the top of Google’s result list for the search “fleximagically searchable”. The application could not include the words anywhere in the SWF file or the embedding HTML, but had to load it dynamically as a consequence of a button click, or similar.
First of all there were serious problems with the competition — to make a long story short the rules were strict enough to ensure that each competitor that didn’t do anything really stupid would (with only tiny differences) be weighted exactly the same by Google. The only thing that would make Google rank them differently would be parameters besides those that the competition was about, the page title, URL, links to the site, etc. So the winner would not win because he or she SEO’ed their Flex application better that the others, but because he or she employed other SEO techniques better (but without breaking the rules).
Secondly, it wouldn’t work anyway since a month after their announcement it was apparent that Google didn’t actually index dynamically loaded content, making their new SWF indexing technology completely useless. It also made the “fleximagically searchable” competition impossible to win.
Things may still change, Google may get around to implementing the missing pieces and start index dynamically loaded content, but even then there are serious problems with making sense of a Flash site, a thing without semantic structure, content or hierarchy.