Silverlight and WPF? A real contender to Flash/Flex/AIR?

We recently had the pleasure of competing in the PhizzPop Boston challenge. It was fun, fast and hairy. Prefaced by a couple days of training on Expression and Silverlight we were unleashed for 3 days of sleeplessness during one of the worst storms of the season. Good times. We competed for the challenge of it - and an opportunity to work with Microsoft and their would-be Flash/Flex/AIR competitor. And, with MIX08 this week (and SXSW next week), much hooplah was made about Silverlight 2.0 and where MS hopes to take it (and the Expression tool set).

We thoroughly enjoyed working with it. It's no Flash or Flex competitor, yet, and we did have to write thousands of lines of code, which would of been hundreds in Flex, but we knew it was young, and muscled through it. The pieces will be featured at the SXSW Nationals, and can be seen on the PhizzPop site for all that competed and produced working applications (some did not).

But this is not about PhizzPop, or the Challenges - it's about whether or not Microsoft, a late comer to this arena, can make a serious play and gain some ground. Real ground, and not by buying that ground. I think so. But am I the only one?

I'm curious as to what everyone's thoughts are on Silverlight and WPF, as a serious contender (however far out) to Flash and Flex (and AIR)? I work in both, and have developed a myriad of applications, both small and large. What are you doing, how do you feel it has progressed, and do you see this being a serious contender our space?

Best. -t