I tend to agree. From a corporate behaviour perspective, there's really not much more that could be asked from Microsoft on Silverlight (and by extension, .Net in general).
Unfortunately they just don't have enough goodwill to pull it off. No one trusts them not to pull the rug out from under everyone if it takes off, so few outside the MS sphere of influence invest much into it, even though it has good potential.
If they want to build the social capital to do that sort of thing, they'll need to show that they're willing to be a follower of industry standards, not a leader.
The people making this argument aren't using the same definition of value that you are. Yes, value and price are not the same thing, but they're using the word to mean price.
If you give away music, you do create the expectation that music should be given away. If you make your livelihood taking a cut of music sales, you're going to want music to sell for a high price and you won't appreciate people doing things that tend to lower the price.