The CNET article describes Royale as a set of tools that will use "a standards-based text format similar to that used by Java developers." The point here is to extend Flash's appeal, and make it more accessible and usable to J2EE developers. The focus of Royale will be "on using Flash to create attractive, easy-to-navigate interfaces for using J2EE applications."
Dates for beta testing and final release of Royale have not yet been announced by Macromedia.