i also kind of question whether it would look good or not. things like camera roll would skew or distort the overlay in odd ways or in a manor which wouldnt line up properly. there is the modability, considering you have to define high and low res graphics, rtt and hud versions of each. in my opinion the hud_gauges table is one of the harder to understand tables. i could see it getting complex really fast.
what i was thinking was to have the vector optionally contain 2 or 3 components, if the parser sees 3 coords, then it knows its dealing with a point in model space and runs the transform math (which is probilby one line of code internally) each frame to determine where to put it, or if it sees 2 coords it knows its dealing with absolute screen position. not sure if the parser would like that, my assumption would be no, but it might be more versitile than i think it is. the feature would have other uses, such as if you want to use a different reticle configuration.
regaurdless of wherer that particular feature gets implemented. theres strill the matter of model integration. my demo used 3 panel textures to which gauges would be rendered. of course this gets tedis. the speed of rtt diminishes and texture usage increases as you add more textures. it might be better to define just one big texture for all guages that will be rendered to, and then the modder can either use uv mapping, coords, or a combination of both to line stuff up. anything rtted can get spewed out in the cache folder and moders can use that as a base template for uv mapping within their models.
my system also used a seprate set of geometry for panels which i had applied invisible to, they were raised a tiny amount above the normally textured panel. if you rendered a texture you could replace the invisible texture with the rtt texture. this allows you to use the cockpit model even if rtt didnt work, and you just see the fixed textures through the invisible polies (this is where overlay would be useful). then again you coulde have a static gauge map and replace that with the rtt image if it works.
none the less i look forward to any implementation of this system.