[loungin]

> Also, is there a standard way to make discoverable the http methods that can be applied to a resource?

HTTP OPTIONS method is exactly that. Mind your response headers, they can convey plenty of information about your resources: allowable methods, request and response types mime-types (you can rank type preference as well).

> In practice, does anyone write web service clients that use, and are driven by, link discovery? ...

Documentation is always useful. But HTTP can almost be self documenting for well thought out and linked resources. For link discovery, maybe a standard like HAL (http://stateless.co/hal_specification.html) or similar would be of interest. There is another proposed way as well, I can't think of it at the moment but will add an edit if/when it comes to me.

EDIT: I had poor wording, there are several 'json hypermedia specifications'. Another would be (Collection+JSON http://www.amundsen.com/media-types/collection/). Hope that helps.