I implemented the blur fade technique, it is in the latest copy of Andalib Desktop. When the desktop first shows up every icon does a blur fade, it also occurs when you add a new file/folder to the desktop. Try not to vomit while looking at the moving background image. That is some placeholder 3D UI, that should be replaced soon.
All of the normal desktop icon operations are now supported, so please feel free to start using it as your new desktop.