It's too bad. Javascript-in-the-browser and Ajax are both nasty hacks that force programmers to do all sorts of shameful things. And the result is--wanky html tricks. Java, for its faults, is fairly clean when run in the applet environment. It has every superiority over JITBAJAX, except for install issues and a chunky load process. Yahoo games seems like just about the only applet success story.
Of course, back in the day, non-trivial Applets tended to be too large for the dial-up accounts people had. At least that is changed.