Here's one of the things they showed us yesterday, and it's available now publicly...
http://memorabilia.hardrock.com/
That's reason enough to be excited about Silverlight. Wait until you see the NBC Olympics site.
After playing with the site for 10 minutes or so, I see nothing so amazing that couldn't be done in Flash.
That's probably true. The question is more about how easy it was to do. The last session I'm going to is the guys who did it, so I'm interested to see how it went.
What I dig about Silverlight is how easy it is to split design work from programming. If Flash is guilty of anything, it's that much of it is coded by designers, or vice versa, and it looks like it.