I guess I'm still a little confused about what everyone is trying to accomplish with the RetroPie integration. I agree that hosting a separately hosted RetroFE-based image is undesirable, but it's also unnecessary - that's where I was hoping my module/script would help out. The intention is submit it for formal incorporation into RetroPie, so that anyone could go into RetroPie-Setup and 'turn it on' - just the AttractMode, MehStation, and ES-Kids.
Progets - If you haven't tried it or looked at the source, running the install/update script will compile and install the latest RFE from BitBucket. The steps mimic what is in the old RPi script, plus more auto configuration to make RFE work well in a RetroPie environment. Are there other specific steps you believe the script should make? I guess I'm curious about the concerns you have with AttractMode being installed in via the RetroPie-Setup.
Pieter - With regards to your concerns about changing the video driver for the emulators, that could be inserted in the script as well - probably not the most elegant solution if you can prevent the need in the first place. But especially considering the majority of RetroPie pushes folks to RetroArch for emulation, that's a single config change that I could automate. Additionally, I could modify the autoboot settings as well - however, the RetroPie admins might not look kindly on that. That's a case where it might be netter to let people know that they should use the autobot config setting that is built into the setup tool.
At the end of the day, I think I've got things pretty close to usable and can script in any gaps. If you guys can provide some requirements for improving usability, I'd like to help.