I'm sure episodic games can and have been featured.
Homework Salesman, Love and War: Act I, Wilfred the Hero, Part 1, Master of the Wind. I think what they want to know is that it is completed before it is featured.
Edit: Oh, wait. Are you talking about having a game featured on the frontpage of this site? Or simply hosting an episodic game on this website? Because if it's the latter, sure, do whatever you like :P