How are you running the HTTP server from ‘inside the bge’? To me it looks like you are running a server on the same machine and talking to it via urllib or something? Also, if you are running the HTTP Server from within blender, why? Running a full HTTP server, that can only be accessed from the localhost machine to run a UI sounds a bit bloated. Maybe I’m missing the point. I can appreciate the work you have done with this, but maybe you could expand a bit more about what is going on here?
I highly doubt it. Think of it as POST requests communicating with the bge, not actually modifying the source.
edit: After pondering this for a while, I think I can see some potential in it. Could you maybe go into some depth about how you are running the server from within blender, and what capabilities it has? I think to save some more confusion here it would be useful.