> a way to have the option of both switching and fading passively
Define "switch".
In this case, it surely means "fade too fast to hear, too slow to click".
When car racers want a fast yet controllable shift, they use an air cylinder to push the shift lever.
This has the practical advantage of NOT needing any understanding, even belief, in magical sub-atomic particles or aether or influence at a distance or Ohm's Law. It is just wind, trapped in pipes.
So use an air cylinder to push a standard passive cross-fader.
In the associated image: fader is "all A". Apply air to cylinder port B. Piston moves to the other end.
http://i6.tinypic.com/7xvsnbo.gif
Select which way ("A-B" or "B-A") by which way you throw the standard "3-way" valves. (Yeah, you could auto-select the direction with another valve, but you probably know which way to go, and K.I.S.S.)
Ports in the cylinder wall ends bleed all pressure just before the piston slams.
Select the speed of throw with wide-open pressure or pressure through an orifice. You can calculate the speed, if you spend a day measuring inertia and friction. You can buy ordered sets of orifices. You can jam a stick in a hose and drill it with jeweler's drills (hey, it was good enuff for Ford!). Or you can use a needle-valve and trim to taste, probably best.
For maximum speed you want light piston and large ports and hoses. The upper limit is the speed of sound, 13,500 inches per second. You may not approach 1/10th of that with practical ports/hoses, 1,000 inches per second. Then a 4-inch throw is 4 milliSeconds, which is just scarcely audible, and would generally be considered a "switch" not a "fade". If you insert an orifice 1/10th the diameter (1/100th the area) of the port, speed is roughly 1/100 or 400mS or half a sec. Much smaller orifices are probably possible for several-second fade. I'd think that a fade THAT slow ought to be hand-handled.
If you have vacuum, this works with vacuum. You need larger piston, perhaps diaphragm (though you can't end-port a diaphragm as easily as a cylinder), and much of the plumbing is reversed. My Willys' windshield wiper used vacuum to cross-fade rain across the glass. (You can do better than the tired wheezy warped old Trico hardware on my Willys.)