I like this idea, but I think it violates the unwritten 'complexity" rule (jriver seems leery of complexities). I have suggested realtime floating windows in the past, and I can tell you the "thud" of the idea crashing to the floor in Minnesota is audible all the way to the west coast.
I like your idea not only from the standpoint of cleaning up dupes, but, say, offering up suggestions from your library. If I'm playing Hendrix, "all Along the Watchtower", maybe that's the perfect time to offer up Dylan's original, etc etc etc. The functionality is already there in "locate/name/etc", but it takes more effort than I think it should, particularly for couch spuds like myself.