I am planning to develop a web based chat application which takes in ReSTful requests, translate them to XMPP and deliver them to an XMPP server.
Using websockets for this kind of chat based application looked promising as the events (or responses) can be delivered asynchronously. But if I use websockets as the underlying protocol for transferring the requests from the browser, can this still be considered as a ReSTful design? If yes, how are the URIs, verbs (GET, POST...), parameters represented in the websocket message? Wrap them in an xml/json and send it?
Also, ReSTful architecture states that no session state will be stored on the server. But here in this case when an XMPP client session is created, the state of this session will be stored on the server (violating the stateless constraint)
REST is an architectural style that does not impose a protocol. So yes, you can do REST with Web Sockets, REST with HTTP and REST with FTP if you like.
The main reason to use HTTP is that it is easy and fairly simple to communicate with any component or programming language via HTTP and also because HTTP supports distributed environments with multiple intermediaries: proxies, firewalls...; So you can deploy your service on any topology and anyone will be able to access it.
My rant: If you are a RESTliban and Roy Fielding’s dissertation is the source of truth, verbs are never acknowledged as part of the semantic. URIs are the semantic. The usage of different verbs for different actions has been an elegant evolution of REST over HTTP, but not part of the "truth". You can check the scenario of rest over HTTP evaluated by Roy in chapter six of his dissertation. No mention to verbs. And notice it is an evaluation scenario, not the specification.
TLDR;
If you need realtime two way communications via the internet and the client is a web browser, the best choice is Web Sockets. You could then implement an application level protocol on top of web sockets to implement a RESTful Web Service.