I think it be fun for a survival against the environment + battle royal mode. Been a while since I’ve played Don’t Starve but when I think of all the in-game mechanics you need to keep in mind just to stay alive. I can only imagine how much harder it would be adding in a battle royal mode onto of all that as well.
Not only would you have to keep moving so you could not just set up camp in a single area and build it up. You would also have to find a way to deal with the different seasons, rain, traveling at night. Do you dare set up a large campfire that could be seen by others or just risk it moving along with a small troch light? Do you take the risk of jumping down a hole or keep moving forward.
Be a bit embarrassing if you died from going crazy or starvation than to the spear of another person! It might also wide the audience that could enjoy this kind of thing.
The wolves spawning every evening could be a way to keep players moving towards the center. Stray to far behind and suddenly players at least of your worries.
Winner :). Survival and battle royale could work well together