PoS is a possibility for Kitteh, but this doesn't fall in line with current merge-mining plans. There is a possibility of evaluating a hybrid PoS/PoW situation, but this would have to be very carefully tested if it was used for merge mining, to ensure its integrity and no potential exploits.

Kitteh is undergoing a very awkward restructuring at the moment, but there remains a plan for a hard fork soon(tm) to address the difficulty and reward issues. There are lots of ideas and other developments also occurring in the background. Our Kitteh twitter is alive and kicking.

All I can say for now is 'Watch This Space' ... let's get Kitteh to Neptune ?!