I’m currently developing something I’d like to release episodically. I do think it can be profitable: each episode release is an excuse to market your game once more. Games like the Half-Life series are good examples, too.

Not sure how you intend to profit, though, as you cannot charge people for playing web games on Itch.io.

I'm not a fan nor a hater of episodic video games. Episodic and non episodic could be great video games if done properly.

About developing episodic games, it depends on game's story. If it's complete in one game, then that's it. Next game is either sequel or spinoff or totally new game.

I plan to make my half-small project an episodic one where you can play on the web and that this is updated every so often. What do you think?

Oh so that's what you meant by episodic. I can see pros and cons of this:

Pros:

1. Stuffs get updated over time, making things more interesting and or have more stuffs.

2. Bugs could get removed over time, making the game more stable.

Cons :

1. If the game had save game feature, the update has high chance to break previous save game forcing players to replay the game again.

2. New bugs might appear after the update.