RootFileSystem vs kernel updating

I know that they are two different things, but what is the difference between the actual Linux kernel and the rootFS file system especially in terms of location in memory and updates?

Regarding partitioning, why is it that the kernel and rootFS are nearly always on different partitions? Won't the kernel code be stored within the rootFS itself? So how are they on different partitions in memory?

Now regarding updating, I've been looking into an OTA update framework which claims to do a full kernel image update. It uses two separate partitions for rootFS. If there is a problem updating one rootFS partition, it can fall back to the working rootFS partition which makes sense. However, how is this actually updating the kernel tho? I don't understand.

I know that they are two different things, but what is the difference between the actual Linux kernel and the rootFS file system especially in terms of location in memory and updates?

Kernel is usually one image file (like zImage). In ARM systems kernel also needs device tree file, but let's avoid it for now. RootFS, in turn, is a file system that contains all files in your /, like binaries (init, bash), config files (/etc), user home directory, and so on. Sometimes RootFs contains kernel image file, sometimes it doesn't, depends on your particular system.

Regarding partitioning, why is it that the kernel and rootFS are nearly always on different partitions? Won't the kernel code be stored within the rootFS itself? So how are they on different partitions in memory?

The key to your questions is to think about bootloader (like U-Boot or GRUB). Once you understand how OS boot process works in bootloader, the answer will automatically reveal itself. As you mentioned, different partitioning schemes exist, which leads to difference in boot process. Actually, there is a lot of different boot schemes out there. Let's review some of them, and hopefully it'll explain what you want to know.

1. Kernel and rootfs on different partitions. In this case, bootloader usually reads kernel image to RAM, passing rootfs partition via kernel cmdline (via root= parameter). Then bootloader starts kernel execution, and kernel is mounting rootfs from partition specified in root= parameter.
2. Kernel image is located inside rootfs. In this case, bootloader ought to know where exactly kernel image is located (e.g. in /boot/zImage). Bootloader knows rootfs FS format (e.g. ext4), reads /boot/zImage from rootfs to RAM. Then execution continues as in previous item.
3. Kernel image and rootfs are passed via network (e.g. TFTP). In such case, sometimes, rootfs is being placed into RAM and mounted as ramdisk (from RAM). No persistent storage is used in such case, and any changes to rootfs will be lost after reboot. Another network case is when rootfs is mounted via NFS, then persistent storage on the server will be used (transparently viewed by the user).

Now regarding updating, I've been looking into an OTA update framework which claims to do a full kernel image update. It uses two separate partitions for rootFS. If there is a problem updating one rootFS partition, it can fall back to the working rootFS partition which makes sense. However, how is this actually updating the kernel tho? I don't understand.

In terms of updates, it's not that different which scheme to use, (1) or (2). What are you talking about is called (at least in Android) A/B Seamless Updates, meaning that two partitions (A and B) are used for storing the same image (e.g. old rootfs and new rootfs). You need to understand that it's ok to update just rootfs without kernel. There is a rule in kernel development that reads like this: "We don't break userspace". Which means you can rely on different versions of kernel to run the same userspace, or you can rely on one kernel version to run different userspaces.

So it's more like architecture question: do you want to update kernel in your system at all? If yes, then you need to provide two different partitions for kernel and two partitions for rootfs. Or alternatively you can put kernel image and rootfs in the same partition (for example see Android boot image format), and provide second partition for updates.