In 2023 it seems like no one wants to use anything other than JS and CSS to build a native desktop application. I would be interested in seeing a desktop environment that just cuts to the chase and makes the entire desktop a web view so that developers don’t need to package things into extra layers. Weren’t there a few failed mobile OSes that tried this in the early 2010s?

Palm Pre's webOS (2009) is the most famous. After an acquisition by HP (2010-2013), it was acquired by LG's (with patents going to Qualcomm). The only other major entrant, Firefox, was short lived (2014-2015). Chrome OS (2011-) only sort of counts; I don't think the OS chrome is using Chrome, just the same underlying drawing libraries, but it does run webapps.

Before that was a neat Linux project Pyrodesktop (2007) which was an x11 window manager using Firefox guts to render. There was also a trend of trying to mate Javascript technologies to gnome back then, with efforts like gjs seeing some adoption. I don't know how popular it is, but a spinoff of css was/is used for styling in GNOME for a while.

These days there's tons of web desktop projects. https://github.com/syxanash/awesome-web-desktops . Only sort of in the spirit but i quite adore Greenfield, an html5 Wayland desktop/compositor. https://github.com/udevbe/greenfield

I absolutely think there is all-in potential for the web. I think we're missing a visible rallying point, where a stronger community of app makers can cooperatively advance beyond-the-web capabilities. Project Fugu & WICG help a lot but are also working with Safari (and sort of Firefox) handcuffed to them.