Oh man, that would be so cool in both respects!
I know huh?, I can't wait to get my hands on it either - Hell, it's doing an almost single handed job in convincing me to purchase a PS3!
Indeed it would, as it would also be very amusing to watch all the Gee-wun purists cry out in unified agony!
But this seriously has a lot of potential for a cartoon, though due to it's lack of Human involvement it'd likely never come to pass; as both The_Damned & Bartrim were making the point to me over the weekend though, G1 survived and flourished beautifully with a severe lack of Human character involvement so what is preventing them from doing it again?
Just out of curiosity dude; what is it about 'Character Specific Levels' that deters you so?