Longhorn's Flash Killer?

SunSaw writes "Erin Joyce reports on internetnews.com that "Top developers at Microsoft are working on a new graphics and animation toolset for Longhorn (the next generation of Windows) that could spell trouble for Macromedia's popular Flash MX and Director MX animation tools". Flash's yet-to-be-released competition from M$ is code named "Sparkle" but it wasn't demonstrated during Microsoft's Professional Developers Conference in Los Angeles last week. Is this the beginning of the end for Macromedia?"