I also very recently researched the use of Silverlight in Windows CE. The result is that although it seems that almost there, with a video showing it from MIX08, it may be released some time this year, but most likely not in the first half. They said "some time in 2009," and for several months it was in "private testing."
Because of this, although I would like to use Silverlight, I decided to go with OpenGL ES 2.0 and OpenVG, which is fully hardware accelerated on our current target device. Many features are not so difficult to use even from the .NET Compact Framework.
Oh, and the iPhone is all cool for the phone (or music player), but Windows CE is available for many other devices, including non-personal gadgets / non-mobile products. This is an area where Apple does not shine because they do not license their platform.
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