2 - Is there a way you could think we could capture the magic of this concept promoting compassion and nurture rather than violence?
I'd love to point out that the episode that this concept is based upon is about playing into Finn's 'violence as a solution' motif directly conflicting with a never-ending battle, which was going to damn him and Jake to an eternity of fighting until the end of their lives.
Separately, what was cool about that episode was the loot. Remember Finn's little battle moon and all his neat armor?
I think this idea would really benefit with having a huge amount of magic items and crazy loot. If you look at something like Risk of Rain and it's insane amount of items that directly impact the gameplay you've got a wealth of inspiration for content.