Very interesting. It seems that each visitor is in a self contained environment. I made a simple HTML called "test.html" that I could access from http://cb.vu/test.html. This file was only visible in my own browser,
Indeed, there is minimal communication between your browser and the server. Nearly everything happens locally in your browser. Many responses from the commands you can use are canned. Watch the source code to see how it's done ;-)
Interestingly, I ran rm -rf / as root, and it acted like it wiped out everything. reboot made it act like it was rebooting, and refreshing the page showed "you broke it!" until I deleted the appropriate cookies. Fun!
I've been working on something like this as well, and your approach is closer to what I've done than terminal.js. To me, it makes more sense to pass the commands back to the server for parsing and handling - let JS just be the display handler. Oh, I like the tab completion stuff too.
Your source code indicates it may have an Open Source license on it. Do you have the raw source available somewhere? Happy to share what little I have done so far.
Hey, I wanted to meet up with you in Boulder (Qualcomm interview guy). I couldn't find your email, so I'm spamming all your comments, which is probably against the law. Please email me at ebisumaru@gmail.com, or read my longer comment: http://news.ycombinator.com/item?id=1078343