it is true that for the Elephants Dream we at Orange could use another video sequence editor than Blender, if there was some reason to do so.
we actually used cinelerra a bit when doing early edits of the making of in October for the BConf"05 (LohnC did that little editing, he is reposinsible for the making of).
but as, especially with Peters patches now in CVS and will be in the 2.42 release, the Blender sequencer is robust enough for editing this short (and Peter’s 2hour long) movie. there is nothing principal in Blender code that hampers video editing functionality, i mean: if you dont work with 3d, you can just ignore the 3d view. but there surely are things to be improved in the code, and for a long time in the autumn i was actually looking at other codebases like the LTC framework that Jahshaka uses … and it would also be possible to make the sequencer just a UI to something like LiVES.
one strategy to develope larger / different things with Blender is forking, and in a way the 2.42 sequencer was developed in a fork (Peter’s private copy he needed in their Belgian studio to make a movie (but not 3d)). the Foundation supports that by giving projects cvs (in future also svn) repos etc. actually during 2005 Bassam here was using that fork, instead of BF, for working on the live edit.
but certainly there is still room for separate video editing apps also, and also in the open source / linux world there are now many cool libraries (like livido) and even frameworks / platforms that can be relied upon … and related to other areas like 3d, well, there is no limit to the amount of interesting things that could be fun.
so, good luck indeed and hopefully there is interesting code to look at soon
~Toni