I have a GUI project which I am about to start. GUI requirement is simple ( though not as simple as tkinter will suffice). So I need to use a GUI toolkit for python (which will be wxpython if I have to go for GUI). Now I am thinking, why cannot I use simple web-framework such as cherrypy or bottlepy (sorry, if I am not thinking right. I am newbie to server-side programming) and create html pages as my graphical interface and use DOM ( again,I guess, I am speaking right) rather than using wxpython to create the overall GUI. I can then, write all of my business logic and leave the rest to simple html rendering where I have to spend less time in formatting tables, creating buttons and forms and worrying about the sizers. 
My question is: Can somebody use web-server python package such as cherrypy or similar and get-away from using graphical toolkit? Is it really beneficial or am I thinking this thing upside down?
The benefit I am expecting:
I can use jquery to have many features which might take lot of time to create with wxpython or other GUI toolkit. For example, if I want to have autocomplete feature as similar to jquery, it is whole lot of different story in GUI toolkit like wxpython. And also, lot of drag and drop features are easy in html.
You think absolutely right. There are loads of python-based frameworks, just choose the right one: pyramid, pylons, django are the most popular and widely-used.
I suggest you to outsource HTML/CSS slicing to some professional instead of doing it by yourself. You can face up quite a lot of browser-specific things, which will waste your time, but obvious for an experienced person.
Using web-server to substitute for GUI in python