When kwin is being run from console, interrupting instance started with "kwin_x11 --replace" freezes my screen. If I start it with "kwin_x11 --replace &" then it's not an issue. I'm not sure if it's a major concern, however I don't think that whole screen should be frozen in such scenario.
You're freezing the process responsible for rendering, it can't do anything else.
Fair enough, freezing whole screen still seems a bit drastic, unless kwin can't do anything about it since it's interrupted from outside.