You can do anything with C2 because you can implement your own plugins.
So everything is possible, i've already done two plugins for my own needs.
But think about something : doing a website with C2 is not bot-readable so your pagerank on search engine will be super low.
But it will be cool for user experience. It was already the problem with Flash websites, the problem is still not solved even if you do your site with an HTML5 tech.
Your website have to be filled with structured text content.
Now to answer the first question, yes, this game can be easily made with C2, most of the effets are already inside the software, you will need great artists but it's doable.