Microsoft sent out an official email announcing that Microsoft Silverlight 3 and Microsoft Expression Blend 3 will be launched on July 10, 2009.
Packed with new controls, features and functionality Silverlight 3 is starting to really give developers and designers a headache - Flash or Silverlight. For certain solutions Silverlight has taken over

If you haven't already discovered the new features in Silverlight 3 here is an overview of the new controls, features and functionality that is currently within the Silverlight 3.
Controls:
- DockPanel
- DataGrid
- WrapPanel
- Label
- ViewBox
- AutoCompleteBox
- TreeView
- Expander
- HeaderedItemsControl
- HeaderedContentControl
Features:
- Support for Media in H.264 and AAC encoding
- Perspective 3D
- Pixel Shader APIs
- Animation Easing effects
- Cached Composition (GPU support)
- New Bitmap API
- Text Improvements
- Element to Element Binding
- LocalConnection API
- SaveFileDialog
- Merged ResourceDictionary
- Network Mapping API
- Out of browser Experiences (Offline Silverlight Apps)
- RIA Services
As you can see they are working hard to really push Silverlight and let's hope it continues. If you hear anything regarding the Silverlight 3 launch please let us know!