The read back facility continues through with all the OS upgrades you'll be pleased to know ... I run Mac OS 10.4.11 and have Text Edit which replaced Simple Text and you can still have text read back to you ....
One last word on the Panther upgrade ... if you have the OS 9 discs you could try to do a
Clean Install ... then once that's done try again to upgrade to Panther ... I'm pretty sure you won't need to apply the Firmware Update as once that's done, it can't be undone.
My iBook gave me so many headaches when I tried to upgrade it to Panther ... sure the upgrade went great but then after a bad memory experience (user error) I couldn't boot it up for the life of me ... everyone told me to replace the LogicBoard, even the Mac Store Tech told me the LogicBoard was fried ... I couldn't even reinstall Panther ... I didn't know what was wrong with it.
Well I didn't believe any of them and bought the OS 9 discs from eBay as that was the OS version they were originally released with ... guess what happened when I tried to install OS 9 over the top of Panther .... Yep ... it accepted the installation and I have an iBook resurrected from the scrapheap! The only reason I haven't upgraded it to Panther again is that it doesn't have the minimum amount of RAM due to my clumsiness ....
So maybe it'll work for you too ...
I'm curious about where you bought your Mac from ... you said "the Store" upgraded it to OS 9.2.2 for you? .... I hope they sold you the Mac along with it's Installation discs ... and where did you get the Panther disc? Is it a full install or an upgrade one? The upgrade Disc would require you already have OS X installed ....