It's nice to see that Microsoft is still blatently copying Apple without mentioning that they're doing it. That being said they are at least offering a new place to use it in. The effect in the first demo is almost identical to the effects that they use in iChatAV for OS X Tiger.
I do like that they're adding it to the browser and CSS but since nobody else has it few to no companies will be able to use it. If they're smart they'll make it as a plugin to browsers that people can download. But we all know that won't happen.
As far as the XAML goes. It's a cool idea. I know Karlos won't be using it

but all in all I think many people will like it. It's dangerous for someone like me who wants desperately to learn 3D better since I need to learn it the hard way first.
Thanks for the link. It was interesting.