I agree with the comments that he was likely looking for HTML5 local storage, and may have expected you to have experience with it.
Frankly, unless it was an integral requirement of the job and you stated you had experience with it, his expectation and reaction were unreasonable, in my opinion, for anyone with any amount of experience.
Why?
Because, three years ago, HTML5 as a spec was still in its infancy. In other words, for you, specifically, your career is about as long as the history of the spec itself. It's not uncommon to see jobs looking for people with more experience with a product than the product has been around. It's rare to see the same happen for an entire specification. For that, I applaud you for finding such a gem.
More seriously, though, it sounds like the issue lies more with your interviewer asking you an overly vague question, and judging you too harshly on it. It's not uncommon for interviewers to ask vague questions, especially in the development arena. Usually, this is done to try to gauge how you think, and where your first instinct leads you. For that, you did well by questioning the need to store that kind of data locally. These questions are not, in and of themselves, bad, but what the interviewer does with them can lead to a bad outcome for you (arguably, such interview termination means you probably don't want to work for that company, anyway).
Now, it's possible that the company's business needs required they use local storage for one reason or another. If that's the case, it should have been spelled out in the job description, and you should have been ruled out as a potentially viable candidate when your resume reflected no such experience if they felt they couldn't or shouldn't train or otherwise provide the new employee with the time/means to come up to speed on the technology.
As for local storage, itself -- as I mentioned previously, HTML5 as a spec has only been around for about three years, and that's being generous and counting the "last call" drafts. Then, you have the issue of browser support, which may or may not have a long history (for example, while name-value pairs have been widely supported even prior to HTML5 solidification, IndexedDB and Web SQL DB are still sketchy).
Finally, the usage for HTML5 local storage is less common still. In my years as a web developer, I've come across an app that I know utilized it all of once (there may be some that use it invisibly, but that's harder to quantify), and maybe half a dozen projects that may be able to make use of it (but didn't really need them at that time, or the cost of using that approach vs another wasn't justified).
In a more general sense, failed interviews happen. Software development is far too big a field to be able to know all the little details about every single thing (in this case, the storage limits of HTML5 local storage), and being honest about not knowing a given thing is, in my opinion, still the best route (I personally have more respect for someone who acknowledges their gaps in knowledge and seeks to fill them, than for someone who tries to cover up the fact that they don't know something). With that in mind, I'd say you handled the question well, given the information you've given here. If there was something you did wrong, it may have been in the details of how you responded, which we can't help you with, here, because we weren't at the interview to assess the non-lingual aspects of your responses.
