We are now entering the golden age of web applications. They are where video games were in the late 80s, when there were countless small game developers and an explosion of creativity.
There are 2, somewhat polar, reasons for this. First, the tools that allow "regular" developers to create web applications are hitting a critical point, with comprehensive and accessible frameworks such as ASP.NET, Ruby on Rails, Subsonic, and the like.
Second, customer expectations for web applications are still relatively low. Just about anyone can design a functional web site. You don't need special technology or advances skills to make something that's useful.
I predict that 2008-2010 will see a huge boom in the web applications industry.