Exactly. The vast, vast, majority of Flash content that people actually want to use is not standalone movies or static websites, but flash games.

In flash lingo aren't games just interactive movies? I remember being quite confused when I discovered I could play pirated flash games on my video player software.

I mean, to the extent that Tetris, Pacman, or Super Mario is an interactive movie, sure? I guess technically they're a series of animations which change (very quickly) when you press a button. But most people would call those games.

I mean that they are movies in terms of what Flash call movies. Flash covers a huge number of features (networking, interactivity, animation, etc.) I believe that Flash games are implemented with the functionalities intended for interactive movies.

That's included in the phrase "standalone movies". I'm so used to working with SWFs that I call all of them "movies" even if they're entirely a single frame with everything handled in ActionScript.