It mentions that it relies on mDNS (Multicast DNS) which is link-local (for the most part).
It might be nice if it could be configured to also leverage a DHT like the Bittorrent DHT such as Webtorrent uses, but that may be out of scope. (From what I guess, restricting it to link-local may possibly be an intended restriction for now.)
Hosting HTTP from JS is nice (and potentially quite useful in p2p/mesh/offline-first worlds), but the real proposed benefit here would be adding a first class mDNS UX to the web browser. Right now anybody can host a web server and mDNS advertise on a local network, but there's no cross-platform, cross-browser way for me to tell you how to pull up that mDNS advertised web server. On some systems, some of the time, in some of the browsers you can use mdns-name.local and access that server. But a lot of system/browser combo don't support that (or worse, don't support that reliably). (Not to mention the questions of how to access mDNS advertised names that don't meet URL standards such as are full of : and space and Unicode characters.) If FlyWeb could help get something of a standardized web browser interface into mDNS, that alone would be a whole lot of good for the intranet/link-local/IoT web.