Doesn't look like a kernel exploit to me.... Looks like the Sky3DS method but with a much improved software menu for loading the games. (This is just what I've been expecting.) I could be wrong, though.. and I'm sure I'll get a lot of hate for saying this, even if it turns out I am right. -_-
In order to create such a menu, one would need to boot a file (presumably from the SD card in the 3ds), which would enable it to run inside the 3ds firmware (think of it as Lua scripts in games/emulators).