Thanks for the code, most of it I've tried, but a few might be worth cheking out. I'll see what I can do.
Answering your questions:
1) Is there any way to tell DK to differentiate between artwork directories for say... snaps? It's my understanding that they would have to all be under <base_artwork_dir>\snap. However, if I had snaps for every game for every emu I use, that would be one BIG freaking directory. So will it/can it/does it recurse subdirectories, or am I basically hosed.
Your looking at it wrong. Your primary artwork dir is for mame.
So it should be in c:\mame\ with all of your folders named accordingly.
Your other emu paths should be put in the secondary aw dirs entry below it. And you put aplty named folders there too. You can have an infinate number of base dirs that way, it's just you can only have one for mame. The fe doesn't associate the base dirs with the emus in any way, so be sure to have a proper hierarcy setup as they are read in order. (with the mame base dir tacked on at the end as a last resort)
2) Is there a way to instruct DK to use a fall-back element type? Like say I want to ALWAYS display a snap, and then in a second location show EITHER a preview movie clip, or if that's unavailable, show one of crashtest's title snaps.
Fall back element type, no, but if you'll look at the skinner you will see that snaps already show a movie if available (if you've checked that option) and with togglesnap turned on they alternate between snap and titlesnap. Movies will always be associated with the snapshot exclusively as the movie is just a moving snapshot.

3) I see lot's of commands for controlling songs, but I can't figure out how to set up the music features. Is this currently just a stub, or am I grossly overlooking something?
Do you have a playlist for that skin? Check out the lazarus documentation, for this stuff.... it's suprisingly similar. That applies to most of your other questions as well.

But for the record, their aren't really any music features. It's just to control background music in case you have heard the currently playing tune one time too many.