In the JS projects you listed, the JS SSH client only runs in a Node context, not in the browser, and the TCP proxy would have to be run either on the SSH server or on the client computer. If you’re able to install a Node instance with Websockify on it, I’m sure it would be much more practical to use a traditional SSH client instead.
But yes I agree with you that I wouldn’t trust a service like this because of what I perceive to be a fundamental security issue. But I think they did the best they could with current technologies.