The controversy stemmed from three things at PDC10:
- Microsoft showed off IE9 and their commitment to HTML5.
- Other than Silverlight's involvement with Windows Phone 7, there weren't any major Silverlight announcements.
- In an interview Bob Muglia was quoted as saying, "Our Silverlight strategy and focus going forward has shifted."
And from that many people assumed Silverlight was as good as dead. It's a wild conclusion if you ask me. And sure enough, Bob Muglia then wrote an article stating that he was misunderstood, and that Silverlight is still very important to Microsoft. Despite his statements and others from those such as Scott Guthrie and Tim Heuer, the rumors continued.
Then in December, Microsoft held their scheduled Silverlight Firestarter event where they demonstrated upcoming features of Silverlight 5. They're bringing a bunch of new features I'm looking forward to. The most visually stunning will be a new GPU-accelerated 3D API built directly into Silverlight. The fact that they're continuing to bring innovations like this creates a strong case for Silverlight's future.