Using a web service is often an excellent architectural approach. And, with the advent of WCF in .Net, it\'s getting even better.
But, in my experience, some people
For a small-scale web app (You have to ask the question, "Will it always remain small scale?" though) using web services, separate business layers, data layers, and so on and so forth can be overkill.
Before anyone shoots me, I do agree that separation of logic between layers along with unit tests, continuous integration, et al are bloody brilliant. In my current role I'd be utterly lost and rocking in the corner without them. However for a very small-scale web app being used to, for example, track contact numbers and addresses for a company of 36 employees, the cost/benefit analysis would suggest that all the "niceties" listed above would be overkill.
However... Remember to ask the question "Will it always remain small scale?" :-)