The 24-bit PNG image format has held a ton of promise for so long. It promised designers the ability to have true alpha transparency for their images so that they could save files once and put them over just about any background color or pattern and they'd look great. Generally, PNGs save as reasonably small images too.
However, Microsoft's Internet Explorer browser has been the albatross around designers' necks. Versions 5 and 6 had no support for 24-bit PNGs and they dominated the market for so long that it seemed like we'd never move beyond using the simplistic transparency of GIFs. Then Firefox changed the game by not only supporting PNGs (something the previous iterations of Mozilla browsers did too) but by becoming popular enough to make the use of PNGs tangible. Even more importantly, Firefox's growth pressured the elephant in the room to follow suit. Now, Internet Explorer 7 supports transparent PNGs and it's quickly replacing its predecessor as the dominant browser.
At this point the vast majority of people are using browsers that support the transparent PNG. Huzzah! The critical mass has been reached and I believe it's finally over the top for the PNG.
Pownce, the latest project I've been working on, is the first major site I've designed that makes extensive use of transparent PNGs. You'll notice the background images on all of the sub-pages are subtly transparent over the graphical page backgrounds. PNGs are being used in several other important places as well, both for effect and for ease-of-use. It's been extremely fun and liberating to finally have the confidence to use PNGs like this. I already plan on moving further in this direction and some projects for Digg that haven't yet seen the light of day will be using PNGs as well.
I think the prudent designer isn't going to deprive IE6 visitors of a good user experience with regard to PNGs. Just leaving those poor lost souls people to ugly patchy images isn't acceptable. However, rough edges to images if you save an equivalent GIF for each transparent PNG is hardly a major drawback for these people. I believe it's an acceptable trade-off.
I'm certainly not one to be on the bleeding edge with new technologies (at least most of the time) and I think that's why I feel so good about starting to use transparent PNGs more frequently — they're not bleeding edge anymore. PNGs are ready (and maybe they've been ready for quite some time) for truly mainstream adoption by the entire web design community.
