You can use tce= if you need persistent storage for extensions that you install during execution, but you do not need tce= to boot and use the remastered ISO. (If I want to add an extension, I just remaster the ISO, which typically takes only a minute or so.)
For example, I typically run MC in a qemu virtual machine and execute a version of MC (mcssh.iso) that is remastered to have the Dropbear ssh server with my public key installed:
qemu -m 128 -cdrom /tmp/mcssh.iso -redir tcp:22222::22 -boot d
That is the equivalent of booting the ISO on a bare machine. I use scp and rsync over ssh to save and restore state of the (virtual) MC machine.