OK, and what does your kernel actually do when a kernel thread panics? It "stops execution", sure, so it will... oops? Causing exactly the problem given in the article?
It shouldn’t be a question that tedunangst should even have to ask, given that he has had a chip on his shoulder about Rust and its safety guarantees for years and thus should have learned that much about it by now.
The real issue with this error is not the panic of course - it's the fact that during a panic, C doesn't provide a canonical way of unwinding whatever actions have been performed so far. Rust (or even C++) do provide a bit more robustness in regards to handling errors in an unwindable way, but Rust and C++ probably aren't tenable solutions for the kernel in this case. It's far easier to add an oops limit and kiss this technique goodbye (hopefully!).
Was that supposed to be a hard question?