I think the Masters of the Universe would be a great RPG setting it is absolutely filled with interesting, colourful factions and backstory, and would have masses of option for character play. Especially if it was based on the more recent anime style cartoon series Eternia.
As a skirmish game or whatever though..not really my tastes, but then Im predominantly a Roleplayer and dont tend to look at things in terms of tabletop wargaming viability.. beyond my love of Battletech and very occasional game of ACTA and SST.