The downside is not having nowhere to host Dynamic Content. Given current Browser Panorama, this could be a headache, as you’d still need a server to service stuff, and there are cross-domain issues, whitelisting, and stuff like that.
Alternatives depend, but for Javascript, there is CORS, but you should really make sure your server are well behaved, specially about potential XSRF/XSS Exploits, and to manage session storage as well. JSONP is also a good alternative for most matters, though.
Although I love this design, and heard great things about it (but I’m a mullet developer: Strong in the backend, weak in the frontend).
Perhaps some day I’ll try something about it, perhaps by porting my weekend Google AppEngine / WebToolkit Calculator (which does not divide - it needs a service for it) which is hosted at
http://gwtcalculator.appspot.com
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