1)
I think that it depends on what your ambitions are. If you want to work mostly on the frontend and making things look pretty; Flash is certainly a skill that fits in your toolbox. If, on the other hand, you are more interested in making things work on the serverside, I would not invest my time very heavily in flash. As with most things, however, it does not hurt to know a little bit about everything, since it makes it easier when integrating things.
2)
I think Flash will still be around for some time, because it is already widespread. Today, most computers will have Flash installed, so if you are developing a rich browser application, flash will be the safest bet. This may change with time, however, and there are serious competition to Flash available today - such as Silverlight or Flex. Personally, I find Silverlight more appealing (I'm a .NET guy), but wouldn't use it today for a widespread application, since many users won't have the runtime installed.