Is there a reason you want to do this without a TextBlock?
A typical way to implement such a watermark would be to place a TextBlock over the TextBox and fade the watermark in or out based on the TextBox's focus state and contents. A more complicated variant would be to include the TextBlock in the TextBox's
style and control its visibility with a VisualStateManager.
If you search for TextBox WaterMark and Silverlight you should find some examples which will get you going in the right direction.
--Rob