VS, on the otherhand, has stagnated, between 2005 and 2010, apart from integration with the new hotnesses like Silverlight, MVC and LINQ, I can't really point out any improvements. While I must admit I love MVC over ASP.Net (keer-spit), even now you feel the meddlers interfering and making it do unnecessary magic.
Its javascript integration is still shockingly bad. It doesn't even highlight brackets or braces and the auto-indenting is erratic. Javascript is so key to web programming these days and yet for the first time I find myself juggling VS with Notepad++ because that free open-source program is actually a lot better.
Sooooo very shockingly bad. =(
For example, I use this to create strongly-typed bindings to individual fields/properties of class instances at runtime, which lets me pass around objects of types like 'BoundMember<int>', and generically store into them - essentially the same as 'ref int', except it can outlive function scope. This is really useful when doing asynchronous programming, and it lets you kill duplication when building things like configuration dialogs.
Good examples there of the differences.
The only big contention is "In what ways is C# ahead of its peers in the industry?" This comes down to a language war where there is no winner, but the way C# has put together great feature sets around key scenarios. Generics done right, much improved co/contravariance, nice lambdas, dynamic support which is actually pretty useful, extension methods, and of course async. While async exists in some languages, it doesn't exist in what I'd consider peers (other popular languages) from Common Lisp, Python, Ruby, Java, C/C++, and Javascript. And frankly, I think this probably isn't all that important -- and more religious than anything else.
But I am curious about one thing you said, A big part of what I did before I left was prove that most people don't understand how to use VS. Moreover, there's a lot you don't see - all of the failed attempts to do things even more amazing than async.
Could you expand?