Hi,
DISCLAIMER: I consider myself as an advocate of the Flash platform. I admire Silverlights huge potential as a technology to deploy almost any .NET content through the browser, but it has low penetration, is horribly marketed and -although perceived as such by many (mostly people who don't know either Flash or Silverlight)- is no competitor of Flash, as much as Flash is no competitor of Sliverlight. The idealist in me loves the idea of doing everything in HTML+JS using a standard, instead of relying on 3rd party proprietary software. But the truth is, JS is slow and the API is limited, and implementations of JS, HTML and CSS are terribly inconsistent accross browsers.
If you really wanna stick to .NET and are so interested in targeting the iPhone and its siblings, then you might wanna check out MonoTouch.
Still, even though this may surprise you, I am going to tell you to use Flash. :)
Why? The image processing bit is the smallest part of your application. Whatever it is you are writing, I am very sure of that. I don't know about Silverlight, but in Flash the filters used by "Thumba" and "EasyPainter" can be created within a day, most of them simply using ConvolutionFilter, ColorMatrixFilter, DisplacementMapFilter and BitmapData::paletteMap or even simply by applying one of the other filters Flash offers out of the box. Any additional things can be created using PixelBender, which was pointed out by George. The kernel language is a subset of C, so porting classic filters shouldn't be too time consuming. Also alchemy (an LLVM backend targeting Flash Player 10) would be an option worth investigating, although it's not very stable yet.
The biggest part of your app will be a lot of GUI design, GUI implementation, Business Logics etc. Flash is really great when it comes to simple, yet reasonably fast image manipulation and with the Flex framework and MXML you have a powerful tool to productively create the GUI of your app, that can interoperate very well with a multitude of server solutions for virtually any platform.
Also, Flash has a great and active community, offering tons of tutorials, code snippets, libraries and frameworks, and a big ecosystem, with cross-compilation tools to deliver flash content to other platforms (including the upcoming Flash CS5, or the mentioned Elips). I don't understand, where you got the impression, that the Flash platform lacks developement tools. The difference to the .NET suite is that they are provided by a multitude of vendors. The upcoming Flash Player 10.1 was already pointed out by George, but never the less, I wanted to stress, that this makes many of the cross-plattform considerations obsolete.
Last but not least, I'd like to point out haXe. It allows compiling to SWF, but also to C++, using the very same API provided by NME, to target the iPhone. Also there's work in progress on an android backend. If you're aren't playing to launch within the next 4-5 months, then this is definitely an option.
greetz
back2dos