A while back, I had an acquaintance of mine make the statement "Microsoft is dropping .Net".

With the popularity .Net, why do you suppose he had that impression?

It turned out he had confused WinFX with .Net and figured that WinFX was a replacement for .Net. An understandable confusion even though WinFX is built upon the .Net Framework and includes the .Net Framework in its redistributable.

Well guess what?  To alleviate this problem, WinFX has now been renamed to the .Net Framework 3.0.  Check out Somasegar's blog entry about this:

Additionally, a bunch of great new .Net Framework 3.0 resources have just come online. 

And last but not least, check out the Cider Page: http://wpf.netfx3.com/content/cider.aspx