I've just found one issue with the patch:
@@ -722,7 +714,6 @@ class ImageCreator(object):
         kickstart.KeyboardConfig(self._instroot).apply(ksh.keyboard)
         kickstart.TimezoneConfig(self._instroot).apply(ksh.timezone)
         kickstart.AuthConfig(self._instroot).apply(ksh.authconfig)
-        kickstart.SelinuxConfig(self._instroot).apply(ksh.selinux)
         kickstart.FirewallConfig(self._instroot).apply(ksh.firewall)
         kickstart.RootPasswordConfig(self._instroot).apply(ksh.rootpw)
         kickstart.ServicesConfig(self._instroot).apply(ksh.services)
@@ -734,6 +725,9 @@ class ImageCreator(object):

         self.__run_post_scripts()

+        # selinux should always come last
+        kickstart.SelinuxConfig(self._instroot).apply(ksh.selinux)
+
     def launch_shell(self):
         """Launch a shell in the install root.

This reverts
http://git.fedorahosted.org/git/?p=livecd;a=commitdiff;h=d8c25944dde2de95a38c08fbb8e890295290ab21

Other issue is that pykickstart "selinux" command doesn't have --type option to specify the policy and lokkit. assumes "targeted" if --selinuxtype=<type> is not specified. SelinuxConfig should not touch SELINUXTYPE already set in /etc/selinux/config by %post script.
To avoid lokkit side-effects, I'll amend the patch to use Augeas to modify /etc/selinux/config

Alan