The most relevant result I could find for "linux on the web" was https://linuxontheweb.appspot.com/ which doesn't seem to be relevant at all.
He also posted a comment in the thread with some more details:
> It makes heavy use of the HTML5 Filesytem for local storage, as well as Native Client for vim, python, and plugin codecs to enable highly configurable realtime a/v streaming via WebRTC peer connections. Windowed HTML5/JS applications can be developed live within the site itself. There is a feature to stream terminal sessions to each other, in order to show how to efficiently use vim to develop applications, for example.
I try to stay away from the above kinds of sweeping generalizations about the whole thing nowadays. It is best to let it speak for itself and evolve in its own good time.
Also, link number 5, at https://linuxontheweb.appspot.com/shell.os is for people who just want to poke around the deep system internals via a command line. For that, you need to use the "import" command in order to pull in libraries of commands. For instance, running a command like:
$ import fs && vim
should open up my custom-made vim clone.