Well, you can include custom repos, so a Mer distro is certainly possible - they use the openSUSE build service anyway

This will be a great way to provide a custom development environment for your application if it is hard to be build. Lets see what will come out of it.

P.S. Just built a quick openSUSE 11.1 vmware image in 3 minutes (quite fast, I expected slower) and I'm now test driving it (the test drive is running inside the browser and you have a limit of one hour to meddle with the test), probably to avoid someone using it as a simple desktop replacement. Of course you can download the entire image for test locally.

You can also export the kiwi konfig to build the appliance locally if you want.