Hello,
My name is Igor Seletskiy, and I indeed was the person behind H-Sphere until 2007.
CloudLinux automatically limits resources on per customer bases -- which in turn improves stability, and might allow you to increase density.
In some sense it has similar purpose to RFXN script, though underlying technology is very different.
We are not a monitoring solution. We work on CPU scheduler level, and as such we don't have to kill processes, nor 'count' how much they are using now. As the result -- the technology works even if the load spikes before your monitoring solution had chance to intervene. It is much more reliable, and allows you adjust limits on the fly.
All our kernel changes are GPLed, and available from our source repository:
http://repo.cloudlinux.com/cloudlinux/5.6/os/SRPMS/
Kernel module is not GPLed (as we are not required to do so)
Same with some of the tools/plugins we provide.
Regarding MySQL -- it is something we are working on
http://www.cloudlinux.com/blog/clnews/beta-mysql-governor-v04.php
Though we haven't worked around yet through the way DA ships MySQL -- we plan to do it in the near future.
Overall system is only needed for people running shared hosting. If you run just one or two sites on a server, CloudLinux has no benefits at all.