So the DOM was introduced in 1998, three years after applets and plugins. In 1995, you could write JavaScript code to dynamically render a page on load using document.write, but updating the rendered HTML was another story. Otherwise, JavaScript was limited to very very simple things.
When DHTML was introduced in '97-'98, the only major browser that had a reliable DOM was IE until Firefox came around in 2002. Netscape tried, but it was buggy to the point where there were no real workarounds to the huge gaps in missing functionality.
As far as 1995 was concerned, applets and plugins looked like the future. Honestly, the web was so new and so inferior to other things in 1995 (Macromedia, WYSIWYG tools, etc.), I think most of us saw HTML being replaced in a few years by a richer clients, applets or plugins.