The tool doesn't generate the best markup, but the ability to export your animations out of Flash to HTML, even if the final code needs some clean up, will certainly be appreciated by many developers. Flash isn't going away anytime soon but many will want to move their Flash content to HTML5 so it can run on devices that don't support Adobe's plug-in.
Wallaby means that Flash developers can easily reuse graphics, masks, and animations from their Flash projects in an HTML file. This previously took hours to do by hand. The tool will also tell you which elements can't be converted, like animated masks, filters, and ActionScript.