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This support is for the Linux kernel only. So if the Xen hypervisor itself needs to be updated, it's reboot time.

My understanding of all the kernel splicing technologies is that it will depend heavily on the nature of the patch.

I also feel the same.

If the patch consists of executables that are in use, then it has to give prompts to admins on the usage and to patch it later.

Another concern may be, system may start patching and meanwhile, user starts related applications and it may make whole system unstable and unusable.

I guess, before patching, users need to be stopped till patching is completed successfully.

Not really since the libraries remain affected.