Many amazing things can be done with AJAX/DHTML but there are limitations. AJAX and applets can be used together in the same UIs with AJAX providing the basic structure and applets providing more advanced functionality. The Java can communicate to JavaScript using the Live-Connect APIs. The question should not be should framed as do I use AJAX or applets, but rather which technology makes the best sense for what you are doing. AJAX and applets do not have to be mutually exclusive.