The API owners met today to discuss this Intent.
The consensus was that we should proceed with full removal of <applet>, without preserving special behavior of fallback
content in the presence of presentation attributes. We concluded that the risk stemming from that is seems small enough,
and is therefore outweighed by the complication of keeping around code and having to have a two-phase deprecation in
the future.
We also identified that the risk for enterprise deployments is higher, and so we will proactively reach out to enterprise
customers to make them aware of this change.