Naivete is awesome when trying to not be it ;)
What does playing in the browser get you when you need to download 100MB+? You use the browser to get access to the standard features and DOM, if you ditch all that, add in a huge upfront download cost, then you might as well just install. There are plenty of cross-platform ways to do it these days. Additionally, browser games have an air (fair or not) about them of cheapness.
Then again, I'd be really happy if someone proved me wrong, and significant webgames became a thing. And it is a great exercise to analyze why webgames are bigger.
The infinite city is "just" tying a location to a randomly chosen and oriented set of objects. All the rest is standard scene graph rendering pipeline. The city shader does that for each "pixel" in the scene, and takes much less data to get a far cooler effect. Imagine coming up with an algorithm that picks a random lego object (a car, a police station, a boulder, etc) for each inch on your floor. That's infinicity. Now imagine picking a single lego piece based on your location and direction you are looking, and having that always match up even if you move, and when doing so, the resultant "legoscape" is a cool city. That's the city shader.
Sorta.