SVG is a markup language for 2-dimensonal vector graphics. SVG has been around a few years (it became a W3C recommendation in 2001), but has been slow to gather momentum, mostly because of competing standards and the dominance of Macromedia Flash (the SWF format) for delivering web-based vector graphics.
If you want to distribute your vector graphics far and wide, then the answer is "no", or rather, "not yet." SVG will not display on all web browsers currently.
IE will display SVG if the Adobe SVG plugin is installed (http://www.adobe.com/svg/viewer/install/). Mozilla/Firefox has a built-in viewer, which will be part of Firefox 1.1 (which is scheduled for release in 2005).
If you want to develop specific applications and can control the web browser that users will use, then SVG might work for you. Again, what is attractive about SVG is that it is standards-based.
Make an SVG diagram using the basic SVG shapes and apply styles to them. For advanced users: use an XSLT transformation to generate an SVG (the oXygen XML editor will display SVG: select Tools >> SVG Viewer then browse to the SVG file).