Update README.md for clarity and consistency in resource allocation rules

Signed-off-by: Cong Wang <cwang@multikernel.io>

Author: congwang-mk

README.md

@@ -107,7 +107,7 @@ Baseline DTB (static)
 ```
 
 **Key Points:**
-- **Baseline contains only resources**: Hardware inventory available for allocation, loaded once via `kerf init`
+- **Baseline contains only resources**: Hardware resources available for allocation, loaded once via `kerf init`
 - **Instances created via overlays**: Dynamic instance lifecycle managed through device tree overlays (DTBO)
 - **Overlay generation**: Computes delta between current and modified state, generates minimal DTBO
 - **Transactional overlays**: Each overlay is a transaction with rollback support via `rmdir`
@@ -204,7 +204,7 @@ DTS: /instances/compute                  →  /sys/kernel/multikernel/instances/
 - Instance node name in DTS (`web-server`) = directory name in kernel filesystem (`instances/web-server/`)
 - Kernel assigns numeric IDs, but users reference by name
 - No manual ID coordination needed
-- Instance directories and `device_tree_source` files are auto-generated by the kernel from the global device tree
+- Instance directories are auto-generated by the kernel from the global device tree
 
 ## Validation Rules
 
@@ -220,36 +220,34 @@ DTS: /instances/compute                  →  /sys/kernel/multikernel/instances/
 ### CPU Allocation Validation
 
 **Rules:**
-1. All CPUs must exist in hardware inventory (0 to `total-1`)
-2. CPUs must be in the `available` list (not `host-reserved`)
-3. No CPU can be allocated to multiple instances
-4. CPU lists should be explicitly enumerated
+1. CPUs must be defined in the baseline resource pool
+2. No CPU can be allocated to multiple instances
+3. CPU lists should be explicitly enumerated
 
 ### Memory Allocation Validation
 
 **Rules:**
-1. All memory regions must be within memory pool bounds
+1. Memory regions must be within the baseline memory pool
 2. Memory regions cannot overlap between instances
-3. Sum of all allocations must not exceed memory pool size
+3. Sum of all allocations must not exceed baseline memory pool size
 4. Memory base addresses must be page-aligned (4KB = 0x1000)
 
 
 ### Device Allocation Validation
 
 **Rules:**
-1. Referenced devices must exist in hardware inventory
+1. Referenced devices must be defined in the baseline
 2. Devices can only be allocated to one instance (exclusive access)
 3. Device references must be valid (no dangling phandles)
-4. SR-IOV VF numbers must be within available range
-5. Namespace IDs must be within available range
+4. SR-IOV VF numbers must be within device limits
+5. Namespace IDs must be within device limits
 
 ### Global Resource Validation
 
 **Rules:**
 1. Instance names must be unique
-2. Instance IDs must be unique
-3. All phandle references must resolve
-4. Hardware inventory must be complete and consistent
+2. All phandle references must resolve
+3. Baseline resource configuration must be complete and consistent
 
 
 ## Integration with Kernel