What is Web 2.0?
Web 2.0 is a term for advance internet applications, like RSS, Wiki, Blogs, Social bookmarking websites, YouTube and all those applications who encourage online collaboration and communication. This term is invented by Tim O’Reilly in 2004.
Web 2.0 Design
From design point of view Web 2.0 is more User Centred and encourages more online Collaboration, Communication.
Many people mix the terms Web 2.0 and RIA, and call it as Web 2.0; however I believe a website design can be 2.0 design without being RIA (Flex, Ajax or WPF)