Scott Guthrie has now mentioned on his blog that Silverlight 3.0 will include 3D support with GPU hardware acceleration.  Flash 10 was recently recently with hardware acceleration, Silverlight is at least 6 months behind, albeit with the superior programming system and potential ecosystem.

He also mentioned, that the next release will have the fuller design surface in Visual Studio – a key weakness that I mentioned and potential source of revenue for Microsoft from developers (needing to acquire Expression Blend) in the meantime.

H.264 video will also be in there along with other mysterious improvements yet to be announced.  I wonder if the long overdue video capture will be in there?