Yes, it does work. I test under Mac OS X Lion - Firefox and Chrome.
Flash is updated on my Android device (currently 4.0.3 ICS ROM, but I also asked a number of people to check via their devices - Nexus S and Nexus. None of them played the live stream). Regarding the http://www.wowza.com/demo pages - some Android devices opened it, others didn't... my current configuration 4.0.3 opens the demo pages, but is lagging a lot... I'm on HTC Sensation (dual-core).