You may find the following question helpful: Smarty Vs. Javascript/AJAX
I brought up a few points in my answer to that question:
You should use server-side scripts to show any data that is known at the moment the page is loaded. In this case, you know the list of products should be displayed. The fact that a question's answers should be shown is known at page load.
You should only use AJAX calls to load dynamic data that is not known at the moment the page is loaded. For example, when you click the "comments" link under a question or answer on Stack Overflow. The fact that you want to view a particular question's comments is not known at page load.
Javascript should not be required to access core functionality of your site.
You should gracefully degrade functionality when Javascript is disabled. For example, Stack Overflow works just fine with Javascript disabled. You don't have access to real-time Markdown previews or dynamic badge notices, but the core functionality is still intact.
A single HTTP request to a server-generated page will load significantly faster than a request to load a page that makes five or six additional AJAX calls, especially on high latency connections (like cellular networks). See Yahoo's Best Practices for Speeding Up Your Website.
You should think of Javascript as a bonus feature that might not be enabled, not as something that should be used to construct critical pieces of your website. There are exceptions to this rule. If you want to do some sort of pagination in which you click a "next page" button and only the product list changes, AJAX might be the right choice. You should, however, make sure users without Javascript are not excluded from viewing the entire list.
There's nothing more frustrating than when a page can't be accessed because the web developer didn't obey the KISS principle. As an example, take Friendly's Restaurants. I wanted to check out their menu while I was at the mall, so I loaded their website on my iPhone, only to find out that you literally can't get any meaningful information about the restaurant without Flash. It's nice to have fancy menus with swooshing desserts flying everywhere, but in the end, I just wanted to see the items on their menu. I couldn't do that because they required Flash. Graceful degradation in service would have been helpful in that case.
Some things on the web can't be done effectively without Javascript. Displaying a list of products is not one of them. If you are still unsure, look at how other popular websites do things. I think you'll find most of the successful, well-engineered websites follow the guidelines listed above.