Its what I feared, bootsplash support has been removed from the PPC kernel, so I think its time to track down a dev and find out why. On the "Semi-good news" front, I decided to custom compile bootsplash support into the PPC kernel, using the bootsplash patch. It has been a harrowing experience, but I have a 95% working bootsplash, which segfaults just before KDM comes up. During shutdown it causes a system lock and the G3 wont turn off.

I am working on modifying the patch and will post the file here once I am done, and submit the patch to the devs as well.