So, instead of getting raped by GPU farms, we are now getting raped by multi-CPU server farms 
No, just the CPUs on GPU farms.
Probably you're getting raped by GPU farms, too. You don't need to change the kernel from cgminer or reaper all that much to GPU mine this coin right now, and at the current value of N I would wager that most GPUs get 1000+ KH/s.
Wrong... it isn't using standard scrypt algo... you can mine with gpu but non of your shares will be accepted by the network.