Silverlight 1.0 was released to the web today. This is great news! Though, in my opinion, it's getting too much fanfare as being an application platform, when in reality, it's just the next generation of the "Hosted Applet" or "ActiveX Control" paradigm. I see greater utility in using Silverlight to create portions of a web page rather than wrap the entire web page experience into a single applet. YMMV.
I also noticed that Windows Live Suite was released today, to much less fanfare. The ironic thing is that the Windows Live page that I linked to is entirely done in Flash and not Silverlight.
Now, if I were on Slashdot, I would have stopped there as a cheap attempt to call out Microsoft for not eating their own dog food. But, the truth is that there's no reason for the Windows Live site to use Silverlight today. It was just released in a production fashion, and certainly doesn't have the installbase that Flash already has (so why alienate potential users?) Also, I'm well aware of the fact that the Windows Live site was in development for months, likely, so the chances of having a Silverlight-based version ready today as well just would not have been practical.
You'll see more and more Microsoft sites (and hopefully other companies) use Silverlight over the upcoming months to enhance their web presence. You just can't expect them all to be 100% Silverlight on Day 0.