I kind of got the impression that the mode you mentioned is similar to a note fading into a feedback harmonic, like when you face a loud amp. I don't know how they would do it otherwise...
For people who always have the driver on, it might be nice to have a momentary switch for a gain/sustain boost, sort of like what you mentioned, but as a boost to turn up the sustain control instead of power to the driver. As for power, maybe it could run off phantom power? I know I'd like that.
There are a lot of different control options you could offer. Personally, I'd want a switch like this, instead of a toggle: http://www.radioshack.com/product.asp?cata...%5Fid=275%2D011 I like the switches they have on the synth equipped Strat. It would be easier to just tap a switch that's near the strings (could be next to/near the volume knob on a Strat) than flip a switch; this way if you pick near the bridge, you wouldn't even have to move your hand to activate the driver.
The external box is definitely a good idea, though I wouldn't want it. It's sort of like with synth pickups, you can get the external one that works fine, but if you know you want it permanently, it's best to have it installed inside, and some people won't like the look of a box on the surface of a guitar (If I interpreted your idea right). It's a good idea though.
When you're ready to package the whole thing, you could sell it as a loaded Strat pickguard, with all the electronics mounted to the pickguard where the control cavity is. I know that's not the biggest issue now, but it's something to think about for people who don't want to do anything complicated to install it, but want something more permanent than the box. On a Les Paul with a pickguard, the controls could mount under the pickguard, if there is space. That would also make it easier to install.