I Believe Club Penguin world would not have a Ruler because from what i seen, It does not have a king or queen or whatever. So it would be likely be a Homage world for everyone who loves Club Penguin.
Sorry for the bump, but i would love to see Club Penguin in Kingdom hearts if they know it existed in their universe.
Do You Mean Toontown? i have never played it. and i would like the Anti-Form to come back, if you do know what it is,look for Sora's Anti-Form On Google. and don't forget the limit, i think limits like this: hot sauce flare,water waves and snow avalanche.
Based on the trailer of Kingdom Hearts 3, I don't think Club Penguin was there... so i thereby disagree that Club Penguin is perfect fit for Kingdom Hearts, I doubt Disney would care about that game because Club Penguin was not really that popular either. but your limits... yeah. those are pretty good ideas.