If you want a stripped kernel to fit alongside LinuxBIOS on your BIOS ROM, you can do that as well (Look at targets/arima/hdama/Config.kernelimage.lb for an example).
Last time I looked (or "googled" rather) it was not possible to squeeze a kernel (plus linuxBios) into a 2 megabit bios rom. Has this changed or are you talking about mobos with bigger roms?
Thanks, Larry