Essentially. Whatever else the Eye may or may not be, I think that's the best explanation for the anomalies.
If so, then the Eye of Magnust might best be considered in two fashions:
~The core, which is in essence a fallen star, as stars are holes/gateways into Aetherius torn by the Magne-Ge in their flight. It may even be the hole torn by Meridia, as she is potentially a fallen Magne-Ge; if the being associated with the breach is cast down, why not the breach as well?
~ The Shell, which is a containment unit designed by (who knows?) which is comprised of several free-floating plates covered in what we assume (for lack of a better suggestion) are Aedric or otherwise Magne-ge(ic?) runes. I can't even begin to imagine what kind of material you'd need to contain a font of unlimited-and-uncontrollable magic, but I doubt it's anything rosier than transmuted souls, or the Magne-Ge equivalent of daedric soul-forged ebony.
Pure speculation on my part, but I can seem them justifying that more easily than KINMUNE. (Disclaimer: I am otherwise wholly in the Kinmune camp.)
Addendum: It could also be Magnus' failsafe/back-door.