What made applets less desirable? All the security limitations?
Try running an applet on a mobile device...you will quickly find out that most (if not all?) do not support applets. Would a web developer wish to exclude a huge (and increasing) percentage of their audience?
I was wondering how can I preload images with HTML or javascript so I don't have to do this:
....
Additionally, is there a more smooth way to remove an image than redrawing? I want an image to go away after an event, but how can I achieve this without having to redraw the whole page?
Its often not worth it to worry about things like 'preloading'. If you wish to add or remove an image without reloading the page, you alter the DOM (eg html/css) using a script (eg javascript). Something like jQuery makes doing so much easier, with the added capability of using effects (eg fade in/out) - but to use jQuery I recommend knowing the basics of javascript (see link Kevin posted)