From what I've seen, it's a blessing to have such a thing on NG!
Only thing is, it can't be used for multiple access, or in real-time, like a LAN party, online car race.. even an game, where 2 or more people can draw on the same page. Or can it? Would it sync up enough to even try something like that? Seems like the API is a two lane road (to and from NG), that goes from point a to point b (no modifications of a file by another user)...
Prid-Outing
I love the Newgrounds API too :D Also, Flash won't die!! or so I hope :P
NoLanLabs
I hope it won't either. It's a quality technology.