The ubiboot image is very large; about 12M in compressed form, true, that is because it includes the root filesystem of the repair mode in the kernel image. However I have not ever seen that it would be too big to be flashed to the kernel MTD partition. Would it be possible that your kernel partition is smaller than on other devices? I believe that even on MTD there is some flash filesystem that removes damaged flash blocks from use, maybe your kernel partition has been reduced in size?