I like your idea of homebrew for the Jungle, but infortunately for Panasonic they can't market it that way.
Also, there are so many people who play MMO's, especially in Japan, that if they can convince people they're getting a good experience it can sell. As for all the extra stuff on the screen, that can be mapped to the QWERTY keyboard, and only the 'action' screen is displayed on the device.
For the record, I'm not saying this is going to work, but as has been mentioned Panasonic still gets a lot of crap for the 3DO and if they wanted to redeem themselves, the MMO market is a good place to at least try, because of it's massive (yes, pun intended) established base, and because of Nintendo's dominance and Apple's headway in the 'normal' portable gaming market.