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Where has the inbuilt colour pallete generator thing gone? I used it all the time.
AsDoug said, the Kuler panel has been removed. Some of its functionality is in the Color Guide panel. It's not as fun to explore.
As far as I remember, Kuler had always been a web-based service.
The palette in Illustrator just served as a browser.
Indeed, 'moved to the web' was misleading there. But for whatever reason they felt the need to get rid of the panel.
I think one reason to abandon it was that the panel (or the browser) just did not work as reliable as expected, Doug.
I did not use it often and only out of curiosity, but experienced malfunctions, such that the palette refused to display the web-based Kuler pretty often, for some unknown reason.
I think it was an experiment.