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This allows reference to an external SRC as per usual; and executes as soon as it is inserted.
Now; I can see that this is an advantage over AJAX as it doesn't require ActiveX to work in IE; and it just means that your response should be valid Javascript instead of valid XML, e.g. you write your DOM manipulations directly as javascript in your response.
I'd be glad to hear of any 'down side' to this. I imagined that it could lead to eventually overflowing memory due to massive numbers of scripts; but this can be avoided by javascript to delete the script on the last line of its execution - seems to run fine.