It looks like it's really a pure-C kernel, so yes, you'd lose all Python functionality. It would be interesting if that tool was also made available as a magic to embed it into regular IPython sessions (in addition to being usable as a standalone kernel).
Though it might be easier to just write a little magic for yourself that does basically what you show above...
@fperez I agree. I'm teaching a subject that is mostly C (first three months), and then OpenCL (PyOpenCL). I decided to use IPython right from the very begining. It's easier for me if the students hand in ipynb's
I am sorry to distract your discussions. But I don't know any other place to ask this question. In the latest IPython version, it seems that the configuration option "TerrminalInteractiveShell.readline_parse_and_bind" is removed. I wonder if it is moved to other place. Then where? If it is removed, then why? I am sorry again to distract.