"I think you can kiss your trade franchise goodbye" is one of my favourite lines from Phantom Menace (just because he randomly seems so damn smug about it. Geez, Panaka, rub it in much?). Moar Panaka!!
It would have been much better had they continued Panaka through the PT in replacement or addition to Typho (or vice versa) in order to build some meaning around the character.
I know this is a pretty old thread but I thought I'd leave in here how it's interesting that he's got a fairly significant role in one of the more recent new canon novels. Spoiler In Leia: Princess of Alderaan, she winds up on one of Naboo's moons and ultimately visits him (he's an Imperial Moff now) with Naboo's queen to discus the mining situation. The best part of her meeting is when Panaka looks at Leia curiously; as if he's seen her before (or someone that looks just like her).
Well, he did seem experienced dealing with all sorts of scum and villainy during the Coruscant missions in TPM's video game.