Yes, this sounds like it could be a great project...
By PPM, do you mean the usual mechanism for controlling Analog model aircraft servos? If so, Espruino already does this quite well.
For OSD, there are chips such as this one that would work pretty well: https://www.sparkfun.com/products/9168
I'm unsure if they do graphics, but you'd think that there would be one that does.
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