Gale Andrews wrote:So, in the currently released version of the plugin, those selections would crossfade rather than both fading out.
Yes, but please also consider this case:

- tracks008.png (16.61 KiB) Viewed 1263 times
In the current version, the fades will be the wrong way round.
Gale Andrews wrote: If I really wanted to crossfade those selections so that the entire standalone clip in track 2 faded in, I must generate silence at the end of the clip and remove the split line caused by generating silence (two extra steps).
Firstly I think that we can agree that this is not a "normal" case of crossfading tracks.
Secondly, you could simply drag the second track above the first track, or you could use the normal Fade-in Fade-out (or "Adjustable Fade") and make the crossfade manually. In this highly untypical case, the new version is no worse than the current version.
Gale Andrews wrote:Should there be some choice given e.g. an option for whether a fully selected track or clip fades out or in?
There are many ways that this effect can be defeated. I have considered many ways to make the effect more foolproof, but after much deliberation my conclusion is that the "normal" case for crossfading tracks is so common that I would rather optimise the effect for 99.99% of cases rather than worry about 0.01% of fringe cases.
My intention is that it is as simple, easy, versatile and convenient as possible for the typical use case. For oddball cases such as your example, there are alternative tools that are better suited.