you have to first understand the differnece between a java applet and just a scripting language...
an applet is a fully functioning program that can make a persistant connection to a server... and scripting language alone even Jsp cannot make a persistant connection since the program must end and exit before data is completely sent to the client...
so if you can break up what actions you want your sytem to take into individual messages that can be passed back and forth between the browser and the server, you can mimic what an applet does...
you will be restricted by the browser for you gui functionality... there are plenty of javascript drag and drop type things out there that have been worked on since ie3 +, and as long as the lag time between client and server communication are acceptable... then maybe a straight browser/scripting solution is doable...
have you looked into flash?