I just found out that Silverlight 3 Beta is out.  Microsoft must be on an annual release cycle.

Here you will find the downloads, what’s new in Silverlight 3, as well as helpful videos.

Some of the new features that really caught my eye are:

1) Support for 3D graphics
2) Binary XML (communication with the server is compressed which will greatly increase data exchanges).
3) Out of Browser Capabilities -  Wow!  Detecting Internet connectivity, running your SL application from the desktop, auto-updating, etc.
4) More RIA built-in controls (new layout containers, treeview, chart/graphing).