Kahler trems are a lot smother to use than FR types. The one I had used steel rollers - a lot are brass, but steel is supposed to give better sustain. Also, a lot of Kahlers were fitted so that they had insufficient break angle over the rollers, resulting in reduced sustain. This will partly depend on your neck angle, but the whole of the trem can be recessed into the body by a few mm if necessary. Sometimes you can't shim the neck to increase the angle by much before your pups are way out of the body in order to be near the strings.

The one in your picture doesn't look like a trem to me, but rather a fixed-tail version of their trem set-up. But you can see on that picture that the strings come up from the ball end holder, over a rounded bar, and then on to the adjustable position saddles. On a trem, the rounded bar has a a large and a small screw hole in it, one (large) for the trem arm and one (small) for spring tension adjustment.

You can also see on that pic that there is almost no break-angle over the saddles. Guaranteed to give a poor tone. The reason that most people preferred a FR over the Kahler, even though the Kahler was really a better trem.

Here's a proper trem, and again you can see the poor break angle over the rollers. Those rollers need to be up higher.

Click image for larger version. 

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On my Chandler Custom Strat, I had the Kahler recessed into the body after a year or so, and it greatly improved the tone and sustain. So please keep this info in mind.