Mark Bower notes:
Gates went on to add more detail: InfoPath ‘with rich controls, on top of the Avalon runtime’, but also with the ability to ‘project onto classic HTML’. So InfoPath is likely to evolve into a Forms package that can target thin-client HTML delivery and rich client Avalon delivery. Look forward to it.
I watched the keynote as well and I thought Bill's response on this “it has taken us awhile to get forms right” was interesting. I didn't pick up on the Infopath connection like Mark did which is an interesting take. A good forms package with thin and rich client delivery would be a good thing. The other interesting thing that stood out to me was that Bill likes SharePoint as noted by Mark Muller:
He also mentioned that he was a big fan of Sharepoint 2003 and the solutions build around it. According to him, Sharepoint provides a foundation for Office applications and system integration. Good to hear this from him ;). Seems like Sharepoint developers won't have to fear to get bored.
For some reason I have this idea in my head that something was said about WinFS and SharePoint merging, but I don't remember if I heard it directly in the keynote or if I just munged some ideas together from all the blogs I read. Anyhow, the keynote is worth watching (hopefully they will post it up in the webcast archive).