My point is that web games is all that Shockwave did when it died/was retired by flash. Flash got its initial traction by spicing up the pretty static web (that role is largely replaced by jQuery (and similar)) but it's complete indispensability came with video.
Actually that's a good point. JS+Canvas will get there at some point soon. Especially with HMTL5 web workers. Check out an example of a WebGL Game (not HMTL5).
JS+Canvas is nice, but it's not nearly performant enough yet, even given how unperformant Flash is.