Today I was fortunate to be one of the first people to try out a very early release of a prototype in-world web browser. The tool was announced on the 'Real Life Education in Second Life' group. The latest releases of the SL browser have included a built-in web browser but this has been limited to a single pop up framed window.
This new 'browser' script allows the 'web on prim' technology but with the added advantage of having clickable hyperlinks. Although this function is limited at present, it does appear to work, and it's fast.
The advantages are obvious and, as far as I know, this is the very first instance of this technology in any virtual world. The early prototype has been developed by avatar Kii Lilliehook and is called 'kiibrowser'. Kii has set up a group (html in sl) for those interested in following the development of this long-awaited tool. More updates will follow.