netflix works on everything except desktop linux.
is like having an oss flash that cant load youtube videos... what would that be good for?
i dont see much future for this project, specially with html5.
Now, I agree that Silverlight/Moonlight doesn't have much of a future in the web. Microsoft is now pitching Silverlight as a platform for rich desktop and intranet applications, plus a content (video) delivery mechanism. For regular web development, they actually support HTML5+CSS3+JS+SVG now (which is a very surprising turn, given their past).
Personally speaking, I consider Silverlight/Moonlight as a low-cost way to build simple, cross-platform GUIs. It is a big step up from Swing/WinForms/WPF (which are the de-facto standards in the corporate world) and has a significantly lower development cost than Qt/GTK/Cocoa. Perfect for LOB applications.
I also consider the cross-platform nature of Silverlight an advantage. You will probably not see any Silverlight applications on your desktop, but Silverlight *can* influence a company's decision to move from Windows to Linux (if their day-to-day infrastructure is built on Silverlight then a Linux transition is possible. Think of Moonlight as a trojan horse into the Microsoft-held corporate world).