I struggled with this for a while. Ultimately, I chose to develop my site using Silverlight for the major components. I did a good bit of research, and I reached the following bottom-line conclusion:
If Silverlight fails, it will not
be for lack of installed base. There
are simply too many levers for MS to
pull (windows update, embedding it in
IE8, or even paying highly trafficed
sites to use it.
I will add this from Alexa - microsoft.com has pretty impressive daily reach and it uses SL on the main page. I would also not be surprised at all if Outlook Web Access is moved to Silverlight - thereby turning every single office outlook user who wants to access email from home/other into a roaming SL installer.
Alexa Link comparing microsoft.com/ebay.com/amazon.com
I will add this from ScottGu's blog entry:
In addition to powering the Olympics
experience in the US, Silverlight was
also used in France (by FranceTV), the
Netherlands (by NOS), Russia (by
Sportbox.ru) and Italy (by RAI). In
addition to video quality, a big
reason behind these broadcasters
decision to use Silverlight was the
TCO and streaming cost difference
Silverlight provided. In the August
2008 edition of Web Designer Magazine
(a Dutch publication) a NOS
representative reported that they were
able to serve 100,000 concurrent users
using Silverlight and 40 Windows Media
Servers, whereas it would have
required 270 servers if they had used
Flash Media Servers.
Over the last month we've seen several
major new deployments of Silverlight
for media scenarios. For example: CBS
College Sports is now using
Silverlight to stream NCAA events from
its 170 partner colleges and
university. Blockbuster is replacing
Flash with Silverlight for its
MovieLink application. And Netflix two
weeks ago rolled out its new Instant
Watch service using Silverlight.