I added a new feature to the 3D editor CopperCube
which should be included in the next update: Dynamic light when publishing as WebGL or Flash application. I expected it to be slow and complicated to implement, but fortunately, everything went fine, see this WebGL demo for yourself:
The renderer now supports 4 dynamic lights at the same time per mesh, which should be enough for most 3D scenes. You will be able to place many more dynamic lights in the editor of course, but the renderer will take only the first 4 nearest lights for every object. If you distribute the lights in your 3D world a bit, you shouldn't even notice this and it should look like your world has many more lights. With this, I think it should be possible to start writing nice looking, half decent games already.
The dynamic light shader code takes about 50 AGAL instructions for a standard solid material shader, which is pretty ok, I think. In WebGL, it only needs 34 lines of code, thanks to the for-loop feature in GLSL. (Which gets unwrapped and extended in asm then anyway, I think).
Note: What you see in this demo isn't yet available in CopperCube yet, but it will be in the next update. If you would like to get a mail once this new version of CopperCube is released, you can subscribe to the friendly Ambiera Newsletter:
Mac OS X 10.6.8
NVIDIA GT 330M
My guess: GLSL issue, the fact that every driver can compile GLSL with different errors was always a challenge.