Not really interpreting that as saying they are killing silverlight. I can't imagine they will given that it is 90% the same as wpf and the two are growing closer every release. It isn't going to be the cross platform tech they though, but that doesn't make it unimportant. It's still going to be (alongside wpf) a good option for line of business apps, depending on the need of the business. That is what we are using it for and it is working out great. But if I were developing a media rich consumer facing app, I'd go with something else.
_________________________
-Jeff
Rome did not create a great empire by having meetings; they did it by killing all those who opposed them.