My thoughts on web based applications are these.

1. The internet has grown because the code and protocols that make it work are open and simple. Not much to think about when you think of HTTP! Since the internet isn't overly engineered and overly complicated anyone with an idea can create a web application. No expensive programming environments, no over priced training, no hidden compiled code, simply an open canvas ready to take paint. Even creating an interface is simple and javascript isn't much of a learning curve from any other language out there.

2. Installing software is a pain in the ass. Updates suck! Updating internet based software allows users to be updated at the same time from a centralized location. This guarantees everyone is updated. Not so much with installed software, plus managing update servers and software costs money.

3. Ever lose all your program settings and your data because you system crashed? Web applications store your settings and data for you so no matter what happens to your machine your data is kept safe. 99% of all web applications do something most home users do not, back up your data.  

4. A web application developer can add features and functionality to the application and I never need to install anything. Again, the developer is saved the expense of notifying users of the upgrades and setting up download servers.

5. Web applications do not take up hard drive space and limit damage to operating systems. Yes I am aware drive space is cheap, but I'd rather save space for things that I absolutely need. Like my data and important files.

One thing I have noticed with internet web applications is that they are interesting, new, and innovative, all that by simply adding the social aspect of the internet with your run of the mill programs! The last program I found to be innovative was Z Brush! It's now several years old, but put that in a web browser and let me create something with someone in another country and wow! Most applications are becoming networked anyway so instead of making an application network aware simply make it an network application.

I ask these hard core coders one question, why do you not consider web application development viable? If I create a video editor, not written in some form of C and compiled, that works in the web browser it's not really an application? That simply makes no sense.

There will always be a need for non-web programmers, but the need for old school application developers will change. The days of installing paint programs, making images in your bedroom, and posting to news groups is coming to an end, welcome on-line photo editing + social networking at your favorite WiFi enabled coffee house, without ever installing a photo editing suite.

Honestly, I have been waiting for this for a long time and I am happy to see useful web applications  that I can use on my smart phone as well as my desktop!

Then there is my employer... There are things at work that make better sense running via a browser from a centralized server. Why do we install MS Access and MS Office on 3000+ workstations? It's expensive and it's a pain to maintain!  Running these in the web browser was an idea I had years ago.

For instance, every year I am asked to find Access databases on our workstations and network drives. Of course non-computer users need an easy way to create interfaces to their databases, which is why we install Access, but this is trivial in the web browser these days and multiple databases on a server, like mySQL, works very well. As you can see here I wasn't the only person thinking about that.

With a web application I do not need concern myself over licensing on individual machines, I no longer need technicians wasting time fixing software problems, do not need SMS to send updates and costly upgrades,  and most importantly I do not have users creating databases all over west hell.

As you can tell I like web applications, I won't mention desktop widgets, so I do keep an eye out for them. Here is my list of the coolest web applications currently available. These are all free, but most require account creation and very few limit what can be done for non-paid usage (just like real applications).  

Google is the most amazing. Take a look at their tools, Office suite, Email w/address book, Calendar w/ shared events, chat, online journal (blog), RSS reader, dictionary, translation, the list simply goes on and on..

Splicemusic Splice lets you upload and record sounds, compose songs, and listen to music. Nothing like audio editing in your web broswe

Phixr On-line image editing application with special effects filters.

Jumpcut Upload, edit, rate, and share video, complete with a really nice video editor. Editor even has effects and normal features found in a video editor.

BitfontMaker On-line font creation application that runs in your web browser.

Cumulatedraw Create a flowchart, network diagram, a office layout, or just play around all on-line.

Jotform Web Based WYSIWYG Form Builder, no html or programming needed. Create, manage, and publish web forms using your browser.

Aniboom Create cartoons and share them.

Kerpoof Create a picture, book, or movie.

You can also find more on my software list under web-sites, but tech crunch also has a list of some fairly new applications you may find interesting.