GDB 7.0 has native support for MIPS hardware watchpoints, as added by the patches from http://sourceware.org/ml/gdb-patches/2008-09/msg00230.html and later. However, gdbserver support is missing. This limits the usefulness of the patches for MIPS machines with limited RAM. The changes from mips-linux-nat.c should be added to gdbserver.
The NEWS for gdb 7.7 says: ** GDBserver now supports hardware watchpoints on the MIPS GNU/Linux target. It was implemented with this commit: https://sourceware.org/git/?p=binutils-gdb.git;a=commitdiff;h=7a60ad401761a2fc7d95ba164b90e4b58052ca86