Due to the lack of responses in this thread, I'm going to assume that the idea above is not possible (which is what I thought, but I figured I'd throw it out there.)
This brings me to plan B...Which I believe is somewhat manageable, but I just want to make sure before I make the transition to MU.
I will set up MU in the root folder with subdomains enabled, and transition my current theme in Wordpress to MU. I will add a link to "create a blog" but I don't want anything else "MU" related on the front page.
Now here's where I'm not sure if my idea is feasible...For the main "blog" page, I'll create an MU user named "blogs", so the page "blogs.example.tld" is valid. I'll make the "blogs" user an administrator and on that page I'll insert the "create a blog" link, along with all the useful premium plugins from wpmudev.org. I'll make the blogs.example.tld theme similar to the edublogs front page (with my own customizations of course :), and provide a link from example.tld to blogs.example.tld.
So what does all this work accomplish? Well for me, I'd like to keep my current home page as similar to what it is now as possible, however I still love the "community" aspect that MU provides, and love the plugins like the "recently updated blogs," "recent comments," etc. With the blogs.example.tld page, users can go their for the community aspect, but still have their own username.example.tld too.
If this makes sense to anybody, please let me know if it sounds possible.
Thanks!