That story by cnet on Netflix was from 2009 and since then Netflix has come out defending it stating that Silverlight is by far the most stable means to delivering movies available. There really haven't been any issues since.
Silverlight (microsoft's attempt at completing with Adobe Flash) and Microsoft Azure ( their big cloud computing initiatve) and two entities that Microsoft is really pushing.
The following big companies are already using silverlight: 3M, NASA, General Mills, Volvo, Xerox, The Associated Press, T-Mobile and soon to be Toyota. This is proof that Silverlight is not a candle in the wind.
With the current rumors that are brewing, it's likely that silverlight is coming to the 360 which will provide immense library of apps and functionality to the aging system - especially integration with windows phone 7.
I'll go one further, I predict that Microsoft is going to unleash a cloud computing (Microsoft Azure) bomb this year, basically eliminating alot of the issues with storage on the 360. We'll see what happens - usually when microsoft is very quiet (like right now) there is a very good reason.
P.S. NO I am not being a blind 360 fanboy, this stuff is very likely. I give my PS3 and Wii lots of love too...
