I have to develop a widget that will be used by a third party site. This is not an application to be deployed in a social networking site. I can give the site guys a link to
If the widget can be embedded in an iframe, it will be better for the frontend performance of the hosting site as iframes do not block content download. However, as others have commented there are other drawbacks to using iframes.
If you do implement in javascript, please consider frontend performance best practices when developing. In particular, you should look at Non blocking javascript loading. Google analytics and other 3rd party widget providers support this method of loading. It would also help if you can load the javascript at the bottom of the page.