I call that thing bullshit.
"Our analysis indicates that TCP is unwieldy and inappropriate for MMORPGs" yet World of Warcraft, Lineage I/II, Guild Wars, Ragnarok Online, Anarchy Online, Mabinogi all use TCP. Extremly successful. I using UDP would have help making World of Warcraft better they would have done it years ago. But they all probably have no idea right?
You should have added some text point to your website in that hot linked image. If they are hotlinking your stuff its ok to put some advertisment in it. Probably would not have saved the business. Thanks for your honest story
99% of all Webbased gaming is flash. Why? Because HTML5 is about at a point where flash was 5 years ago. Thats not just my opionion but facts (see all game portals, FB game etc.) and what the big guys say (http://www.wooga.com/press/releases/wooga-html5-project-goes...)