Scott talked about the big new features in Visual Studio 2008.  Some of them are huge: like .NET framework targeting.  You will be able to target a specific version of the .NET framework (2.0, 3.0, or 3.5) in your VS 2008 projects.  Only features for your targeted version will be available in the project.  Other things we've known about - like .NET framework source code, WPF, Silverlight, etc. 

The keynote included some significant demonstrations of the new features, which were very scripted.  When one of Guthrie's henchmen was demo'ing the WWF workflow designer in VS 2008, I laughed when he said "and we can just change this workflow when the business process changes".  Yeah.  Because it's always that easy.  I'll be running away from that designer anyway. 

WPF apps now have WYSIWYG editor support, but in the demo they didn't really write any code or design a form to demonstrate it.  I'm still skeptical that visual developers will really enjoy creating WPF apps.  I still think plain XAML is going to be the way to go. 

Some "real world" possibilities with WPF 3D were also shown.  They were fictitious "Contoso" apps, but they showed examples of browsing and modifying a grocery store shelf in 3D, which was cool.  Even cooler was the app and user experience that GOT them to the 3D app - which was embedded in an email message which the user accessed from an extended feature of the Outlook ribbon.