Without the hardware restriction (-i wlan0 -- input from wlan0) you could telnet from any connected source (usbnet, 3G, etc).
Hmm...
Sorry for getting the port number wrong for telnet - ports 20/21 are ftp
Now, you mentioned losing sftp if tossing out the dropbear stuff - - -
No hurry on these things, but
To do passive-mode ftp you need to load the ftp-conntrack module ;
But to do active-mode ftp (since the output default is ACCEPT) you only need to open port 21 in-bound (I looked it up this time).
Now, about all that ram in use (90Mbyte) - -
Only load and run ftpd when there is a connection request for it (uses inetd).
This one should help:
http://www.gnu.org/software/libc/man...ing-Inetd.html
It isn't specifically about the busybox inetd, but they should be very similar.
Same can be done for the httpd and telnetd servers (well, for any server).
No need to convert the lab126 telnetd setup now, just noting that it can be run from inetd also.
I am pretty sure the Busybox httpd will do cgi-bin - - WARNING: I am guessing at that one, we may need a light weight httpd that does.