Silverlight, Moonlight and a true VM for your browser
While I was at MEDC, Mix07 was going on next door. I didn't even hear the cool Silverlight announcements until I got back from Vegas. But now that i've played with it, it's exactly what I had hoped for (minus a disconnected use model): We have a true VM to code against on the client side. That means the full breadth of .NET languages to control the reduced WPF presentation layer, plus with the DLR true scripting support at near-compiled performance.
As I expected, there was no linux support announced by MS and neither does it appear that they've opened a channel to the mono team. But Miguel de Icaza has addressed this issue independently with the Moonlight project and listening to the chatter on the dev list and following the wiki updates, that project is getting serious attention. I may even be better this way. I think a firefox plug-in coming from the mono team would be more willingly installed by linux users than something coming directly from MS.
We'll have to see how much more of the WPF set of Xaml gets supported by Silverlight as 1.1 moves to beta and RTM. Obviously, the way custom controls are done is not ideal right now--the way properties are acting against implementationRoot (haven't gotten deep enough to understand why it's not using the DependencyObject/Property pattern) and the shadowing of inherited properties just make for a strange experience compared to Controls in WPF, Windows Forms or even ASP.NET. Hopefully that morphs into a better model as we move along. If nothing else, the development of the promised suite of UI controls provide internal motivation to refine the model. Not that I think that DependencyObject/Property is an elegant coding pattern (at least not until that legwork moves into code generation).
Right now, you need some 1x1 pixel Silverlight object that everything gets channeled through, but MS has already promised that that dependency is going away. So what you really have is a VM and rich framework addressable with bytecode compiled from a huge number of potential languages in the browser. Whether you use that VM to drive your HTML, Silverlight's presentation layer or even the canvas tag is up to you. It's what I hoped that the browser manufacturers would do themselves, but as a plug-in, the chance of this capability becoming ubiquitous is even better, imho.
Silverlight 1.1 alpha is clearly a very early peek into the tech, but it works just great already. I'm curious what it will look like by the time it's an official release. And I certainly hope that by that time, MS has given the disconnected, self-hosted option some consideration. After all, when competing with Flash/Flex, one shouldn't ignore Apollo.