I think it depends on where you nest your rest asset in. If you just do it on the first page of the form, then it will only have access to POST variables that are sent with the form after submission. But this wouldn't help you anyway.
You could maybe do something on the confirmation screen of the form, so print the response of the REST call on the confirmation screen, and based on that value, you either show or hide the Next/Confirm button and an error text. If there is an error, display message and hide next button and tell the user they have to go back to page 1 to choose a different username.
I would still try and do this with AJAX on the first page to improve the usability of it all, but that would be a way to handle it all server side.
Do you think that would work?