It's a good module, the thing I don't like about it though is that it uses the JQuery javascript library. It should be possible to create something similar using Mootools which is the javascript library that Joomla officially supports.
It's not a particularly complicated effect, the only reason for not doing it that I can see is that the developer could not be bothered to rewrite it using Mootools. The problem with using JQuery is that it adds to the download required, because you have to download a whole extra javascript library, and increases the likelihood of some sort of scripting conflict that might make other extensions or templates stop working.
Anyway thanks for the suggestion, that sort of effect might work very well in the Featured Items Carousel module