I would probably want to stick with C code for this because I don't just want to write this game, I want to use this as an oppertunity to learn C so I can help with other things for Rockbox and other platforms/projects.
Sure, it was just a suggestion.
However I would like to know the limitations and capabilitis of Inform.
Inform is a general purpose object oriented programming language disguised as a system for making text adventures, which compiles to a format designed in 1979 that miraculously is still applicable and sensible today. See
http://www.inform-fiction.org/ 
Inform 7 is a radical departure from previous versions; for something which is not interactive fiction in the traditional sense you almost certainly want to use Inform 6, and much of the standard library is not appropriate (since a huge proportion of it is devoted to the difficult problem of parsing text) - however, a lot of the facilities are still very useful.
The limitations are mostly the screen model of the Z-Machine; it's designed around text printing and has limited support for graphics. Displaying pictures and playing sounds is possible, though (but the Rockbox port of Frotz does not currently support games which use these features). The Rockbox port also currently doesn't support fonts or colours or Unicode.. I am intending to implement all of these things when I have the time

The Z-Machine is a portable VM architecture, though, so you don't have to develop or test on Rockbox; just run some other Z-Machine interpreter with the screen size configured to something similarly small.