Timely Joe Wilcox reality check; read the full article for more context-setting 
From MIX08, the major battle ahead will be between entrenched Flash and newcomer Silverlight. Flex and AIR, along with products like Adobe Media Player, support Flash. But the war will be won on different turf: Broader developer toolsets and supporting server software. Expression Studio and Visual Studio 2008 are two products enjoined. Of course, they will be used separately, but Microsoft has created integration points for designers and developers that make Expression and Visual Studio much better together.
Microsoft Watch - Developer - Adobe Points AIR Gun at Microsoft
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