I'm not sure if this is a problem, but one thing that is unclear to me is how/if this protects against an adversary that can modify the html file.
If the adversary can modify the HTML file in transit they can just add some code that sends the password to the adversary's server when the real recipient opens the file. (Of course, the recipient can run it in some air gapped browser etc, but that limits the practical use case quite a lot.)
And if you want to use this to send messages over e.g. email this seems like a somewhat important thing to protect against. I guess you could send the portable secret html file separately, and then the user copy-pastes the message in some text-box, but again this makes it more clunky.