I'm currently talking to a few universities about Silverlight in the context of how better visualisation can drive more people to the portal. I've noticed this Silverlight application on the BBC web site, which they call "the big zoomy photo thing" but don't be put off by the name because it's really is worth a good explore. Anyway, it's a great introduction to how Silverlight can be used to give a great experience for displaying content.
Just click the big yellow button and zoom away.
Another example, and this includes some really neat interface work, is the Hard Rock Cafe memorabilia site.
You'll need to install Silverlight to see these sites but don't worry, it was a simple and pain free process for me.
So, how could a university take advantage of this? What about an on-line prospectus, campus tours, event publicity &c &c &c... I'm sure the creative folk could get togther with some developers and deliver some great content that would give a "wow" to students.
If your university has already done some clever stuff with Silverlight, please share it with us here.