Found at Gizmodo, this is Canvas Cycle: True 8-bit Color Cycling with HTML5. The artwork was done by Mark Ferrari and the code/animation by Joseph Huckaby.
It’s some beautiful work. Check out the following link:
http://www.effectgames.com/demos/canvascycle/?sound=1 and hit the left/right buttons above the illustration to scroll through the different worlds/lighting/execution these guys pulled off. We are definitely filing this under “Things We Love”.