I've been running Panos very successfully now on the Matchbox LX9 32016 sans FPU without any issues (unless I try to use floating point in Fortran).
I just got an email from Udo (creator of the m32632 core) which I think explains why this is not quite the same as your 32016 with the FPU removed.
I'm sure Udo won't mind me quoting his email here:
I watch your discussion at stardot. It just came to my mind that there
is a difference between the modified M32632 and an NS32016 without FPU.
The M32632 without the FPU functionality still performs successfully
the MOVF and MOVL opcodes (move Floating Point). Eventually PanOS uses
these opcodes for Register saving and restoring. An NS32016 uses even
for a simple MOVF/MOVL the external FPU. If the FPU does not exist the
NS32016 will hang.
This could explain the different results seen: "cat works" at hoglet
That makes complete sense to me now.
It also means the Matchbox LX9 32016 Co Pro is likely to be reasonably useful. The Panos 1.1 and 1.4 installs are now working perfectly for me. An it appears the C compiler works and produces runnable code (at least for Hello World). I'll try to get an updated Matchbox firmware out within the next few days.