I just read a post titled - Java Applets = Stupid Design. The actual contention was -

My example would have been web pages that are written entirely as Java applets. HORRID!

I can see web applications designed entirely as applet as very appropriate. Several web applications have been successfully (in business) made that way. Like the author I too do not see much reason for designing a website solely using applet, unless the designer wants to provide unique user intreractivity experience which he cannot achieve to his satisfaction with a mixture of html and applets. Personally I prefer to use the best tools for the job without any bias and in this case that translates to a mixture of html and applets, provided I need the specific capabilities of an applet over html + ajax based designs.

The reason for my strong comment was because the title was too strongly worded in denouncing applets as a whole. The actual content was more specific.

I think applets suffered bad rap particularly due to ignorant coverage in popular media, not due to technological demerits. I can bet applets will make a comeback with wider usage of broadband. The technology is far from dead. Mark my words.