Catalyst can and has done all of what you are talking about. I've even done what you're talking about under several occasions. However, it may not be the best tool to use. In fact, there are a few other cue systems with built in monitoring which are better for certain situations. It all depends on your sophistication. Ultimately though if video content playback is central to your automation then Catalyst is a very viable choice.

If you like I can discuss with you some of the automation and failover solutions I've created.