Good to see that Soma's keynote at VSLive! San Francisco brings the concept of 'smart client' back in focus. This is something I am personally passionate about and it is also the theme of this blog. Here is Soma's blog post on the topic and you can view the keynote video here.
Still not sure what a smart client is as opposed to a simple client application or a 'rich client'? I don't blame you - there are too many of these terms floating around. Believe it or not, 'smart client' isn't just a fancy new term for the same old thing - it is indeed a new kind of application model that attempts to combine the best of the client and web worlds. Check out the Smart Client Developer Center on MSDN to understand exactly what smart client means.
With features like ClickOnce and Client Settings, not to mention the very significant advances in Windows Forms, .NET Framework 2.0 is going to be a great platform for smart client application development!