Well, like the A600, the iBook 12" has one advantage over its more powerful cousins: it's tiny.
MorphOS support for that model iBook is said to be planned for release 3.2. There might be a way to boot the ISO file from OpenFirmware, but I'm not sure. Can Macs boot from external CD drives? If you do get it booted and are planning usage beyond the demo, I join the recommendations of getting a new machine. Alternatively, I wonder it replacing the internal power supply would help - that would be cheaper.