It's taken a while but The EO and .petroid have done something pretty cool: they stripped Daikatana down to the smallest size possible for playing deathmatch, 114mb total download.
I tried it out and it worked perfectly. There's been some modification of lots of little things and it has a great little launcher included to simplify some options. I connected to a master server and found about 5 of them running and people were DMing so I joined and it was tough to stop!
Here is the download (Windows OS) - have fun and hope to see you in there.
UPDATE: The Escapist covered the release in a news story!