It's not "HTML vs. Widget", it's "innerHTML vs. DOM's document.createElement/appendChild". So in GWT, as soon as you start making reusable components, you're breaking the innerHTML layer and have to introduce a Widget. The point of "HTML vs. Widget" is: don't use FlexTable/Grid/FlowPanel for layout and Button/TextBox/etc. if you can simply use an HTMLPanel with HTML inside (and "event delegation" for event handling)
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