It’s almost shocking to think that applets first appeared almost 16 years ago. In time Java has had tonnes of development, but applets themselves have had almost none. They still feel very clunky and heavy when starting up, can be difficult for new developers to get working and have lots of odd bugs. On FunOrb they suggest minimizing and remaximizing if your applet fails to appear, and it’s not uncommon for other sites to write “if it doesn’t work then try refreshing the page”. You don’t get that type of flakyness with Flash or HTML+JS (at least not to the same extent).
But I think the main issue is that although applets are more then capable of out performing their rivals, it’s really difficult to do so. For example there are editors for building pretty UI’s specifically for Flash and Silverlight, whilst none for Java applets (as a result applets always tend to look like applets). Plus so many basic things have been missing like video support. Silverlight is only 4 years old and has none of the big issues that applets do (like fast startup, fully hardware accelerated graphics and video support).

