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From the Silverlight blog ...

Microsoft is involved in over 400 standards engagements with over 150 standards-setting organizations worldwide. One of the standards we've been involved in for years is HTML and we remain committed to it and to web standards in general.  We believe HTML 5 will become ubiquitous just like HTML 4.01 is today.

But standards are only half of the story when we think of the advancement of our industry. Broadly-implemented standards are like paved roads. They help the industry move forward together. But before you can pave a road, someone needs to blaze a trail.  This is innovation.

The Future of Silverlight