I heard that's how they built it. I don't know why you couldn't convert it to a sleeved block, I know LA Billet will make a chromoly sleeve for anything you want, it's just a matter of good machining, sweating in the sleeve. You'd loose a little of the weight advantage though. It's a better cylinder, in my opinion.
Is there any reason that you can't do this? My knowledge of Kawasaki (or ant other bike engine for that matter) engines is poor at best. This is a common fix in any thing else though.