The reason why I'm against that ROM-idea is simply because it does not allow users to exchange components. If I have to fiddle-open my machine every time I'm updating a component, chances are better than even that I'll break the ROM socket at some time.
While it was fun experiementing, this is exactly why I don't mess with burning custom KS images anymore - eventually something gets updated, or you're trying to figure out why some software is broken. Now it's a huge PITA to troubleshoot. I've actually found myself soft-kicking a standard 3.1 ROM a time or two... (and _that_ is not always easy, either, depending on your hardware!)
A minimal bootstrap ROM could be very stable and would not require a lot of updating. Everything else can be placed on flash, and can be upgraded easily by writing on a regular file system.
Given that you get such Flash-ROMs in GB size today for pennies, there's no reason to allocate an entire partition just for system components, write-lock it in regular operating mode, or even unmount if if it is no longer needed.
I've read about a few projects on the a1k forum, some type of flashrom module that plugs into the ROM socket(s). Looks really neat, but I don't know if they are just one-off projects, or might be released in some fashion. That aside, tools like blizkick, loadmodule, or the DENEB flashrom are (for me) preferable to burning ROMs. (Even with a reboot, we're honestly talking a few extra seconds... hardly an issue IMO vs the hassle of burning/swapping out ROMs).