There are alternatives to #1 (ActionScript being one of them; I feel this is a technology which is losing traction to HTML5 so can't recommend going this route). Google's Native Client would also be a good bet, since C code becomes reusable; this, however, is even more bleeding-edge than HTML5 game development, and its future is highly uncertain.
Secondly, I've looked into HTML5 game engines, and non of the free ones look "visually" appealing to me. I am very interested in TGE, so please give me some details on this. Thanks