I do like the mini-muspels as they might make the Eye of Surtur cards more accessible and Sage leveling will become easy! *-* gotta love that lightning bolt siroma card.
Frost driver and destroy EVERYTHING!
I'd be more worried about sparks and doing the latter parts if enriched ores and siegfried tokens were tradeable. Until then they're just good OC-fodder.
As for the actual muspel-
Perhaps there could be a penalty for failure for the entire server, like it decreases the exp/drop rates for the server by 1 for an hour when Surtur wins. It just seems kinda lame when you have him going "Durr hurr hur I win!" after all of that build up with opening dimensions and talking about destroying the rainbow bridge and all.
It wouldn't make as much sense for it to be done with mini-muspel since someone (with an event bag) is actively intruding on his domain and provoking him into doing his thing. With actual muspel, I'm assuming it's Surtur attempting to break out of his dimensional prison and doing evil on his own volition.