The following text is wrong.
The Hypervisor is able to retrieve security updates from either the Red Hat Network or a Satellite server. Where necessary the Hypervisor is also able to connect to the remote updates server via a HTTP proxy.
RHEV-H cannot be updated via RHN.
The only use of RHN registration is to allow guests to consume RHEL virtualization entitlements (the legacy RHEL-5 virt and virt-platform entitlements)
We need to clarify this and stress that the node does NOT need to be registered to RHN.