Hi zakkW,
the RP2/Rp3 image has exactly what you want as built in feature.
- matchbox-window-manager
- midori pointing to localhost
- the output is optimized for a 7" TFT display.
This feature can be turned on / off on the settings page.
Please check if it is enabled.
If it is enabled something goes wrong on your installation.
Please check the log files (MENU->Debug)
Also check the output of:
journalctl
Frank