Not at all...in fact there is some similar discussion going on in the DL.2 forums.

The PRG MBox already does this.

All we really need is two extra channels...one that determines the type of crossfade, and another that determines the speed.

So that once you change your Folder/File values...instead of "snapping" to the next piece of content...it follows the settings on these two new channels.

This should be added to the layers....maybe even as a Visual FX...with FX Param-1 being "type of crossfade" and Param-2 being "crossfade speed".