Progressive enhancement 2.0 is a client thing, it does not depend on the REST API, so it is possible to merge a js-less server side REST client with a js-aware client side REST client. So it is possible to use progressive enhancement 2.0 with a hypermedia API.
By RESTful webservices, the client should store the current state, not the REST service itself. It is possible to use the browser as a REST client, but it will be very short on state storing capabilites. It can store state in HTTP auth, in ETAG, in accept header, in the queryString part, if I send it back from the REST service in every link. Until it is not possible to use localStorage directly from HTML without javascript, the browser as a REST client will be a very poor solution. I don't recommend to use it.