In ScottGu's words:

"
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. ;-)

"

Continue reading here:

Update on Silverlight 2 - and a glimpse of Silverlight 3 ...