XAML is becoming a reality much soon than I had anticipated.  SVG seems to be going to the wayside in favor of XAML.  I really think Xamalon is stepping up to the plate.  They are providing the following new tools:

-SVG 2 XAML converter

-Windows Forms Edition

-Compact Edition

-Flash Edition

This is far beyond what I would have imagined for XAML support this early in the game.  I think this company is a prime target for the MS acquisition team.

If you were waiting for a graphical editor to support Avalon here it is!  It is even written using Avalon and looks very promising.