Having looked at the mod files, it appears that it will require a completely different approach to getting effects like BetterCategories or Categories Dressing allow. The tpl_categories substitute does nothing but output the content built in the class, so modification (other than what CSS can do) would have to be done at the class or function level.
I'm interested in working on this, but it will be a while before there may be any results to share. I also don't want to spend a lot of time on this only to have it rendered obsolete soon by v1.4. (I expect the current Categories Dressing to require major reworking for v1.4 anyway.)


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