Kinoite is the KDE plasma version of the Fedora atomic (previously known as immutable) spins yeah. However, as far as I’ve heard Fedora KDE is explicitly removing Xorg support in Fedora 40, due for release this spring.
Right now the latest release is 39 which still supports both, and for me personally when I still had an Nvidia card up until right after the 545 driver release in October, Wayland (in both GNOME and KDE) was too buggy for me to use it as a daily driver, since Xwayland apps kept displaying previous frames, as if the application was time-jumping in random parts of it.
Speaking of Nvidia, I wouldn’t recommend going with Kinoite directly since AFAIK it doesn’t have the Nvidia drivers built in, rather I’d go with the KDE version of Universal Blue since all of their images have a dedicated Nvidia image that has the driver built in, so that you don’t have to mess around to get it up and running. It’s effectively Kinoite, with a few extra nice things baked-in on top.