Agreed! I'm not too keen on this idea but have been searching for a solution to better encapsulate my code and assets. I do not consider domo the answer, but was an interesting idea.
Something we are doing in prototype with the Template class does put HTML markup directly into the JS code. I am trying to mediate this though by collecting all of my template markup in a separate JS namespaced object. This is helping a lot. And if you don't mind inline style markup in the result, you can do the same thing, keep all of your style together in a separate JS object.
Karl..