Even with only allowing flash they don't publish many games. This could be a reason why developer participation in the community is non-existent. I'm not saying allow every game made in flash to be published, but be more lenient with games. They basically only want pro developers' games on the site, which drives away the newcomer developers. There are 2500 games on AG, 60k on Kong. Meet in the middle for quality to bring more traffic to the site.
As for the adding better games part. It's harder than you think to create a game. It takes at least a month to make a decent quality game that'll appeal to a lot of people.
"The Last Stand - Union City" is actually a game that was added a long time ago.
If you're looking for these 'larger' games, then you simply have to sit tight and wait it out... =/
Every now and then, a new game of this 'larger' type is uploaded, but as they take a long time to develop, it also means that they are not added as frequently as the 'smaller' type of games, which take up about 90% of ArmorGames... AND other major flash gaming websites for that matter! =)