Flash/Shockwave/Director Branding Confusion

Krzysztof Kowalczyk wonders about how Macromedia differentiates its various product offerings:

I got interested in creating flash animations. I went to Macromedia site. I was confused. From their product description I couldn’t figure out which product does what. Thanks to mostly prior knowledge, I figured out that Dreamweaver MX is for web page design, FreeHand MX for vector graphics and Flash MX for creating Flash. Although I’m still baffled as to what Director 8.5 Shockwave Studio is for (except “developing magnetic Internet destinations and powerful multimedia” that id). I remember that a few years ago Director was a program for creating flash animations but what it is now or how does it compare to Flash MX (it’s much more expensive)?