Excellent video. I remember watching it when he first posted. That is pretty much how Ive been doing things manually in unity, ie i had the base texture which was my satellite image, i then overlaid my actual texture, including a normal map, but then reduced target strength at various levels so they kind of blend together. Looks like CF works the same way only its a bit more rigid in terms of the "strength" of the 2 original textures is fixed.
Very much looking forward to getting my hands on CF now.