Joel Spolsky has caused quite a stir in blogspace with this piece. He touches on the thin vs thick issue and his view of Microsoft's view on the subject. Alot of the blog responses and comments give more information about the debate.
Personally, looking at Indigo I think that it's obvious that MS is embracing the web as a transport mechanism, and not a presentation platform (that's what XAML is for) - the best of both worlds (at least for them). They're attacking the deficiencies of traditional thick-clients one at a time, thus Click-Once, the Updater Block and functionality, etc, etc so that there will be less and less reasons to use traditional HTML-based thin-client technologies as your platform of choice - thus locking you into their approach to the future...
Personally, I think it makes sense, although I wish MS were more open about standards in this space (Joel's opinions notwithstanding) simply because HTML was never meant to be a presentation language. Sure, they've tacked on presentation-style extensions (CSS 2, DHTML, etc) but it will never be the best thing for presentation, not to mention the fact that wasn't even developed to be a programming platform. A complete server roundtrip and page refresh for simple event handling? Come on...It simply was never meant to be what it's being used for.
In terms what we're wasting time with, it's simply a matter of using what's available to us, but planning for the future. Everybody better make sure that at least their presentation logic is separated out from the rest of their code, or the next generation of development tools, languages, platforms, and their associated migration paths are going to be verrrry difficult to figure out.
Jeff...
BTW, re: the url tag, you can RTFM here. Kindly pointed to me by Otis, when I asked the same question.