systemd-sysv-utils-194 links /sbin/init to /usr/bin/systemd but this location is not installed by systemd-207, the ebuild should link to /usr/lib/systemd/systemd instead. For example: https://github.com/marineam/coreos-overlay/commit/96bcba45db777f984f210ef1c7082ae64cbadcaf
Right, sorry. I will fix it right away.
Should be fixed now. Please test that I hadn't screwed something up :).
Tested and looks good, thanks!