I've already tried your ideas in most part and came out with some changes based on them, but I want to comment into them.
If you have another flag set selected I think its implicit you won't see the default (custom set), I think it's pretty self explained. It's like any other option in the skin, if you select it, the default won't show. I Don't see nothing wrong with this, but as there are many options to the same thing (flags) I think it wouldn't hurt to add a reset option/button for all the changes, so I added a button with this purpose.
Adding an option (dropdownlist is an option as you have to check it) to show other options, doesn't seem to make things easier or ends having a better layout, instead of having 6 Flag options you end with 7 or 8 if you brake it into 2, when you click on it, too much options display all the sudden. Beside the droplists are used to shown sub options/changes or fill options, not show options. What seems better is brake the Movies/TV Options into two categories "Flag Options & Others" in the way is done in the rest of the Skin Menu, and that's what I ended doing after trying both.
Showing previews flags of current select set has no point at all really. Anyway as an exercise I give it a thought, the only ways I could think on how it could be done were very complicated, and I don't know if it's even possible after much reflection.
Hope you are satisfied with the end result and thanks for your comments.
Update:
- "Fix" for TvTunes crash at library mode. This "fix" is regarding this error
http://forum.xbmc.org/showthread.php?tid=83925&page=25, that apparently not everyone has. I updated to GiT in case other users experience it. But if users think its to much I will remove it.
- Movie/TV Menu improvement
- Little fixes of text in ...1111.xml
- More transparency def. icons "fix" in some views & "better coding"