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I tried some modified command lines for example 5.4.  It seems setting iso image as install source works.

Example 5.4 with RHEL7 fail to mount root fs(LiveOS/squashfs.img).

Following command line works in my env.
(change location to iso image, and some details depend on my env.):

# virt-install -n rhel7ks-guest -r 1024 --file=/var/lib/libvirt/images/rhel7ks-guest.img --file-size=10 --location /var/lib/libvirt/images/rhel-server-7.1-x86_64-dvd.iso --nographics --extra-args="ks=http://192.168.122.1/ks.cfg ip=dhcp console=tty0 console=ttyS0,115200n8" --os-variant=rhel7.0

I catched small typo in example 5.3; "virt-install--hvm" needs space as "virt-install --hvm"

It looks good to me.  Thanks,

The revised guest installation chapter is now publicly available as part of the most recent asynchronous docs release, and can be viewed here:

https://access.redhat.com/documentation/en-US/Red_Hat_Enterprise_Linux/7/html/Virtualization_Deployment_and_Administration_Guide/chap-Virtual_machine_installation.html

See sections:
5.2. Creating guests with virt-install
5.4. Comparison of virt-install and virt-manager installation options

Closing > CURRENTRELEASE