HTML/CSS is one of the easiest way to develop GUIs, one of the most visually flexible, and one of very few things this side of ncurses that runs everywhere. Actually, without hacks, there are probably more end user devices with a browser than a command line.
It's also highly standardized. Regular programming languages have dozens of GUI toolkits, or at least one per platform.
I'd rather we go the other way, and build the browser into the OS, so that desktop apps just serve a perfectly standard web server, with an API to launch a special OS client with slightly more native integration(Toolbar icons, closing the process when the browser closes, etc), to make native app dev easier and hopefully more popular.
Security sandboxes mostly work. People aren't constantly getting viruses from clicking the wrong link, at least not quite as much. They're not perfect, but they're better than having to completely trust 100 different sites unsandboxed, and they can be improved. I'd rather have crappy security than no security at all.