I have always honed the cylinder and been pretty satisfied with the results. So far I have put new rings in 6 or seven K-series Kohlers, among several other types of engines.
That said, I understand from their service manuals that there are certain Kohler engines that Kohler does not recommend honing the cylinders when installing rings. Certain of the Command series Kohlers had what they call "hard Bore" (or some such)cylinders and they do not recommend honing them before installing new rings.
Although the manual does not say, I would guess that honing a hard cylinder liner may produce a surface that either quickly wears out the rings or that never wears to match the rings. Either way it would result in an engine that consumes excessive amounts of oil.