Electric Rain, makers of Swift 3D has posted development on a Flash SWF to XAML converter at it’s site.
Apparently, Electric Rain is full out on the WPF bandwagon. Obviously, they have placed Swift3D version 5 on the backburner. I wouldn’t be surprised if their next version would export to XAML for silverlight.
On another note, it is my impression that some developers that use Microsoft Visual studio would be glad to switch over to Silverlight development. Perhaps Adobe should pay attention to developer’s needs and give them what they really want. Currently, it is accepted that the Flash CS3 has a subpar IDE with a slow compile time. That is why Flex has been given lots of attention.