...OK, after having a bit of a poke around I would respectfully ask for a demonstration/citation of this insanity.
My own experience is that systems that panic get rather warm, which I blindly assumed was because the kernel had entered an infinite loop. This turns out to be the case: https://github.com/torvalds/linux/blob/cbe232ab07ab7a1c7743c...
There are references to interacting with kgdb, booting a crash kernel, and delaying before reboot above the highlighted spot in the previous link. This suggests that panicking is very much a "everything is torn to shreds and never comes back again" event.
Annoyingly I can't SIGKILL, -TERM, or -SEGV `init` easily (PID 1 is special-cased by the kernel), and don't remember exactly how to fire up my kernel initramfs test harness, so I can't properly test this easily at the moment. Am very curious though.