WP7: Silverlight in the browser?

I am really excited about Windows Phone 7 series and have already installed the development tools. One question that was raised at the Mix conference this week was whether Silverlight applications are supported in the browser.

Mary-Jo Foley received the following answer from Microsoft:

“In its first release, the Windows Phone browser does not support a browser plug-in model. We are evaluating this for future releases of Windows Phone […]”

However, when I pointed the browser built in the emulator to my Silverlight chess board, I was able to take the following screenshot. The UI of the emulator was flickering, and I wasn’t able to use the UI, but a plug-in model must be there, I think: