Silverlight is Microsoft's answer to Google Gears and Adobe Air for webclient code and presentation.
Microsoft's Silverlight is starting to wow developers - it has great potential.
As Microsoft builds its cloud systems Silverlight looks set to be a major plank on the web client side of this.
For developers it fits into a larger development framework called Windows presentation foundation - a framework that can include both developers and designers - the potential is good.
Rumour is that Microsoft will use Silverlight to deliver a web office
If you have Silverlight 2 installed - here are some examples:
Hard Rock Memorabilia
Here you can see the Deep zoom capability - here there are hundreds of images in a catalogue with gigabytes of storage which load relatively smoothly. This is a possible future general navigation technique - it reminds me of the early Seadragon presentations
Microsoft's silverlight showcase presents a variety of small applications
Mashoo lists some Silverlight games as examples of application