As long as you're converting TeX math to something else, MathML is preferable only because it may look nicer rendered than an image raster from TeX.
This, coupled with the fact that WebKit MathML wasn't up to snuff, is a pretty good rationale IMO.
Standards-compliance is a means to an end (interoperability), doesn't mean browsers should implement every niche spec that someone comes up with. I want my VRML first, at least ;)
That would be a Chrome-specific non-standard feature. If JavaScript implementation of TeX is too slow, a Chrome-specific solution would be NaCl/PNaCl.
But I really recommend to evaluate how to generate high-performance javascript code (like with Emscripten) and have it working fast enough.
MathML is a joke compared to LaTeX. HTML + canvas, SVG, or PNG is preferable.