Yeah the games at tamatown, are fun, you can win excellent souveniers and when your tama is hungry or thirsty, stop by the food court and grab something to eat.
You can't use souvineers, that's normal. The point of them is to show you did something (bragging rights ), like it's really hard to get over 5000 Gotchi Points, but the ring shows that not only you did it, but you donated all of them instead of buying something you wanted.