Well from what I remember, there is the VB version of DHTML and then there's just Dynamic HTML, which is best supported by IE. The DHTML project type in VB was flawed when it came to scalability - it just wasn't. And, since it required IE to run, it limited its use to those clients that ran on an intranet. If you already had your clients nailed down to IE, then you had lots of other options including client-side controls, bound XML data islands, and other nifty tricks that WERE/ARE scalable.
It was a good idea, but it just wasn't practicle for large-scale applicaitons. Since the main benefet of web applications are scalability, developing a solution based on a non-scalable architecture didn't seem to fit. But, in terms of a robust UI, I believe DHTML was a step in the right direction.
I only played with the DHTML project type a LONG time ago, so I may not be remembering things exactly right.
-Nerseus