I can confirm that Cameleon (it's from Camel, so it's not spelled with the "H") actually does do this and does it well. You can tell it exactly how you want the "morph" to happen; just pick up to 4 sounds and set up an envelope along with an assload of other parameters. It isn't just a crossfade, it's really quite different.

Having said that - although it sounds really cool in theory, it's very hard to get a good sound out of in practice. Try it and see, though.

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My party schedule:
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2009-06-18 - DJ Annoying @ People Need To Know Where I'll Be
2012-11-32 - DJ Insufferable ɸ Or At Least the Stalkers I Complain About
2048-06-66 - Spastic & Whocares ¶ Although I'm Actually Flattered
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