It's not going to be Ksplice as it is not open source. Oracle is only distributing with its own distros.
According to Wikipedia for kpatch:
Since April 2015, there is ongoing work on porting kpatch to the common live patching core provided by the Linux kernel mainline. However, implementation of the required function-level consistency mechanisms has been delayed because the call stacks provided by the Linux kernel may be unreliable in situations that involve assembly code without proper stack frames; as a result, the porting work remains in progress as of September 2015. In an attempt to improve the reliability of kernel's call stacks, a specialized sanity-check stacktool userspace utility has also been developed.
As far as i know, kpatch/kgraft will not be used for updating kernel itself but patching it with "backported" patches. That means that if you run a distro only with security updates or if you manually want to update kernel you can do it with the help of that tool, without rebooting. Take a look at the Using kpatch in Red Hat Enterprise Linux 7 video
To answer to your questions:
- Something like that but on the level of kernel functions. Check the video above for more details.