The VRML/X3D is certainly the best Web3D standard we have (as it is the only one), and developing for Web3D would be more fun if we had a standardized player, for which role I cannot see any product right now. Blaxxuns contact is probably one of the best players right now, but it is not free to use even for non-commercial applications. Octaga and Flux are alternatives, but I wonder, how one should find a decent subset of functions that work on all of them in the same way.
My main issue with VRML/X3D is the amount of work that has to be done on the client, the vast amount of functionality that a decent player has to support, the 3D data, the different sound, image and movie file formats, the scripting... The size of the player is just too much to bear. X3D is a huge improvement, and I hope someone will take their open source software library and wrap a standard application around it.
Interestingly enough, Flux ( by http://www.mediamachines.com) is a company founded (?) by Toni Parisi, one of the creators of VRML. Why he decided to build another commercial browser after so many attempty I cannot say... It just keeps me wondering about the whole open source idea.
Brian, thanks for your advice. The VRML/X3D route will be an option for the tools that I am working on. This is simple to do, since it is easy to export VRML/X3D. But for users who desire a consistent user experience, small downloads and maybe data encryption, I will provide my own file format and a browser plugin. Since my magic ingredient is the automatic LOD generation, the scenes might even be rendered by a java applet. I will look into that.
Thanks again for all your input!