One big stumbling block to this...
If, like I do, you have a ton of third party libraries...i.e.many, many gigs worth...you need to make sure you have room on the drive that contains your Kontakt Factory Library to hold all these transferred libraries. Elsewise figure out how to just put the instrument folders from those libraries into the Kontakt Factory Library folder and point them to their samples folders on the drive where they now reside. Which I don't have a clue how to do.
So, for me, this ain't worth it. Unless somebody can hip me to how I'd do it.