It would mean Microsoft has realized that competing for Flash's position is not worth the fight, effort or money as Flash and its position in general (plugin-ba

It would mean Microsoft has realized that competing for Flash's position is not worth the fight, effort or money as Flash and its position in general (plugin-based web-solutions) is losing grounds every single day. They are not willing to fight a battle which will eventually be lost anyway. They are simply refocusing their efforts to get Silverlight (which is a pretty good piece of engineering IMO) put to use elsewhere. As far as I can see, that is a pretty good strategic decision.