As a win32 developer moving into web deveopment the last few years, I found the
web desktops based on extjs very interesting.
Coolite Desktop (broken)
Ex
I find it an interesting experiment, but I don't really find much added value in it.
The desktop concept works for an operating system. Most people use one operating system. They are familiar with how it works and what to expect in terms of navigation. That being said, having a desktop at an application (or site) level adds another navigation model that the user must learn. If they are expecting it to be the same at their OS (which it won't likely be), then it can lead to confusion because it doesn't work exactly like what they're used to - although it looks like it should.