Dare Obasanjo makes an interesting point about comments made by MS employees regarding Ajax and how it ties in with XAML/Winforms (clue: it doesn't). Dare works with the XML program at Microsoft as program manager on the Contacts & Storage team at MSN.
It echoes what I've been thinking recently - Microsoft are out of the loop on the web, and in development on the web. I think ASP.NET 2.0 will make things worse, not better.