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
The demonstration of capabilities is amazing. To create a desktop environment in a web browser is a beautiful indication of what browsers and javascript are capable of.
With that said, I believe it will (and hope it does) die as a viable development platform. Currently browsers don't provide the processing power that a desktop does and ease of development is much greater for desktop than browser "simulated" desktops.