>Sounds like VFP is going to be a language raither for services than for desktop applications. Maybe it's better for me to start new desktop projects with C# and use VFP.NET utility?

Not really. VFP is still first and foremost a database oriented language for desktop applications. It has grown/been enhanced over the years to have newer technologies and be able to play in up-to-date arenas. But nothing impedes you from doing the same type of desktop apps in VFP8 or VFP9 than before!

Obviously you can start new desktop projects with C# as you say. There is nothing wrong with that, and everybody would be well served by learning new technologies and skills. But as I said, nothing precludes the usage, usability and validity of VFP!