Well, I can answer one of the questions.
The connector is a second daughter board expansion connector which has joystick IO, audio and video on it. It allows a very small expansion board for the JAMMA output card etc. It most cases, only the big expansion connector would be used unless you want to do some funky video or audio stuff.
The CPU daughterboard is still in design, I'll comment more on that when I am sure what is possible.
I will be focusing on the softcore again soon and will update you then.
Best,
Mike