yes, through the FOE channel adapter as described in the KB article "How to apply Operating System (OS) Patches of Hotfixes with minimal updates"
The second part deals with using the management/backdoor IP addresses. There's still the manual process of disabling the FOE engine and rebooting the server. The once a month that we need to do this is an opportunity to test the FOE and make sure it's working properly.
AV updates do not normally require a reboot (and they're normally updates more frequently than OS updates)