The bug was tagged fixed-upstream because the upstream bug was closed, but it wasn't really fixed. They closed it as wontfix, saying that a desktop without applets and extensions is worse than a metacity desktop and that we should just really force metacity onto people, which I disagree with.
In my opinion, the fallback to no-applets/no-extensions is what makes the most sense to let the user know what's happening and let them fix it. However, this is a non-trivial amount of work, so if upstream is not willing to do it or even to carry it if we do it, then it's not really worth the time. I guess this bug will stay as wontfix. -- Regards, Marga