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I always confused .NET with domain names anyway.
I had two applications, side by side, both installed on the same server - one in JSP using struts, the other using .NET.
The output was identical, and the code was practically identical as well - confirming my belief that the .NET was really a ripoff of JSP technology.
ASP is a great "language" to do many things with, but it doesn't have the robustness of Java behind it. So MS needed a way to bring the full power of Java (or C# as they call it) to bear on ASP, hence the ripoff of JSP.
So you should not see Microsoft Office .NET, for example. Although they will rewrite Office in C# (a .NET language), that doesn't make it a .NET development package.
ASP.NET is every bit as robust as JSP. I find the longer I work with it, the more code I rip out as I learn more efficient ways of implementing the same thing. So my web programs are getting shorter, not longer, as they acquire more features.
Their main selling points was it being a framework for combining different languages, they did a little demo showing how to write and complie a .dll in java, and then wrote an app using c# that used the dll. Very neat.
They also said a lot of the code will be open source and expect more free tools for developers like the matrix ide.