This one is also a regression w.r.t. 6UR. Applet, link given below, if hidden using sytle attribute then it fails to load inside the browser.
http://sqeweb.sfbay.sun.com/deployment2/jitu/deployment_JDK7_int_ws/deployment/src/plugin/manual/html/InnerClassTestHidden.html

Try loading the same applet (link given below) with style atrribute removed. This time you can notice that it will get loaded fine.
http://sqeweb.sfbay.sun.com/deployment2/jitu/deployment_JDK7_int_ws/deployment/src/plugin/manual/html/InnerClassTest2.html