larsiusprime: I have to admit I have no idea, this is all rather advanced for me; I'll be satisfied if I can get it to run with the most common flavors of Linux (debian/ubuntu/steamOS, fedora, etc). That said the whole thing is driven by scripts, so if you knew how to do the black magic you describe and could tinker with the scripts to pull it off, I'd be more than happy to roll those changes into the official package.
I am not too familiar with all the background scripting done in the installers and with linux. But I do know how to prepare and work with ramdrives and squashfs drives.
If you want as much backwards compatibility as possible, then you probably would want to use a crom drive (
Compressed rom) where it uses zlib compression, the same setup used for the longest time for emergency rescue disks and for installers (
usually including the minimum needed to get the OS running).
A word of caution and that is to mount a drive you need admin permission; Of course if the script has sudo permissions temporarily that problem goes away.
You can send me what you're working with and I can see if I can get it working on my side, I can use a
VM to do testing, probably Ubuntu (
if it doesn't look too complex)