XNA is something different. It's going to be a higher level set of API's used to cut down on boilerplate code in future games. It may use DX10, but it isn't DX10.
Also, I very much doubt that DX11 will be out before Longhorn. DX9 was designed to be a reatively long lasting api compared to previous versions, and we still dont have a retail card that supports pixel shader model 3.0
DX10 would no doubt contain several more 'profiles' that will take another 2-3 years for the hardware to catch up.
When it comes to DirectX, the software is definately outpacing the hardware.