If you have 2 VMs supporting 2 different byte-codes (AS2 and AS3) then you really have 2 products and only the branding (Macromedia Flash) makes them similar.
The renderer both VM use is still the same (there are no two renderers), also each VM has separate API but both share a lot of code (ex. XML DOM parsing).
Also it's not two different products when it's all in one single binary having both VM's :)
I kinda wished at one time that Flash 8.5 would split into another plugin without AS1/2 support, but anyway Macromedia knows better. Also cutting compatibility just to save few kbytes isn't worth with the kind of machines and network we have today.
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