Being a webdev, I'd love the idea of an HTML desktop, even though I think it'd be somewhat strange. The only problem I see is that to do it properly, we would have to do our own GUI utilities from scratch. So we'd end up reinventing the wheel over and over and over again...

Also, pretty much nobody here uses any GUI stuff, so the distro would end up being something everybody just works on for the fun of it, instead of actually using it. I think we would be better off focusing our efforts on something that everybody here would actually want to use on a daily basis.