funclate has been highly inspired by incremental-dom. However, even if both libraries are sharing the same philosophy, DOM patching, funclate has been designed with custom element in mind.
funclate is shipped with an HTML parser designed to be used at build time. And with a template engine designed to execute render functions at run time.
A compiled template is a JavaScript function designed to create a render function. In other words, a compiled template is the factory of a render function. The render function contains the rendering logic expressed within the HTML template.
When playing with custom elements, one of the most challenging part is the management of a pseudo Shadow DOM. Pseudo, because according to caniuse.com, the Shadow DOM feature is not yet implemented by most of the browsers.
For funclate, by default the patched element is te entry point of a Shadow DOM tree. That means all descendants of the patched element will be visited during the patching process. However, this Shadow DOM tree can have exit point, i.e. an Element. Where its descendants will not be visited during the patching process.
In other hand, the behavior is closed to the transclude concept of AngularJs.
The creation of element like <button is="my-button"></button> is obviously shipped.