Next year we will ship our next major Silverlight release -- Silverlight 3.
Silverlight 3 will include major media enhancements (including H.264 video support), major graphics improvements (including 3D support and GPU hardware acceleration), as well as major application development improvements (including richer data-binding support and additional controls). Note these are just a small sampling of the improvements - we have plenty of additional cool features we are going to keep up our sleeves a little longer. ;-)
Next year Visual Studio and Visual Web Developer Express will also support a fully editable and interactive designer for Silverlight, and add tool support for data-binding