A panel-based carousel scenario would be much more difficult to implement. The main problem is that RadCarousel is optimized to work with graphical elements and images, rendered by the TPF only. Unfortunately, this does not cover the case of rendering nested Windows Forms controls. Even though you can use RadHostItems to bridge several controls in TPF, an important drawback of this approach would be the inconsistently synchronized painting and scaling problems.
That's why I would suggest the following: instead of rotating panels in RadCarousel, you can rotate only snapshot images of these panels. The approach is relatively simple and does not require extensive coding. I've prepared another sample application that can guide you in this case. Here is a screenshots of the design time view of the carousel and panels:
Runtime, when you click on a panel image in the carousel it would pop up like this:
the Telerik team