Unless I've forgotten everything I've learned in physics, you have to be moving at the same velocity as the satellite in order to dock. The satellite is moving with large tangential velocity relative to the planet (ignoring rotation), and the straight-up rocket is moving with small tangential velocity relative to the planet (ignoring rotation). Thus, in order to dock, you would have to burn to match your velocities once you rendezvoused, which would accomplish the same thing as establishing an orbit in the conventional manner. Once your rocket leaves the launchpad, Kerbin no longer applies any force to the rocket (disregarding air resistance), so the effect of the rotation of the planet is negligible after you launch. You can test this quite easily by launching a rocket straight up and letting it fall back down- it won't land on the launchpad, but to the west of it, because the planet rotates underneath your trajectory. In regards to the original proposition- I don't believe such a thing is possible. The magnets on the docking ports aren't strong enough to produce the ÃŽâ€v required to match their velocities, and that's assuming that you actually line them up properly and they don't just smash into each other.