I already research on that git hub, it seems that the source code use are the same base that .35 EA kernels, and some other .35 (like PlayOSS and RootCML) uses. That source code are also a modified Cyanogenmod kernel source. Although I might be wrong. Correct me if I am.

Other than that, most of what you said is correct. Although the thing that stressed the SD card under data2SD conditions is the dalvik cache itself, if the dalvik can be contained in a special partition inside the internal flash (which divided to several partition like the /data and /system for example), then it will be no stress at all for the SD card, in theory that is. Until now, there are no easy way to do this, simple explanation that the android system design prevent it to do so as it is originally design to not let users manage how the partition works.

Other reason is ext3 or ext4 fs are too demanding for SD card (class 4 or lower) as ext3/4  fs requires continuous read/write access, again as it is design for more durable devices such as hard drives (used in linux desktop/OS)

Same for swap, it does stressed out your SD card, but it is not as bad as the swappiness can be set. I myself are using swap via swapper2 (can be found on market) with swappiness 10 or lower so that cache or VM are stored in SD swap if only necessary, my aim are not for performance, but stability, with the swap, my important apps will not force close, apps like messaging and contacts, I hated when I was browsing and someone called and it just closes making my calls rejected. Although even if the swappiness are set low, it does still burdens your SD card.

It's a good thing though that SD card now are more durable and cheaper, there are also provided with lifetime warranty, so even if your Sd card let you down when it is time, you can change it to new for free, just remember to backup as often as possible, twice a month is recommended, if you have important files in your Sdcard.
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