However, you do have to invest the time to learn to program the PIC! 
As far as the slow on/off, you can do that with a large cap across the LED and a series resistor to the switch. This presumes the switch sinks and sources current, not an open collector.
When I fully retire AND have the time and money to invest in an expensive PIC programmer that might be used once, AND learn PIC and assembler/compiler languages over several years, AND build the board that might/not work as expected etc, then I guess I will investigate this route. 
I can assume Gary, that you have already been down this route as a computer/software engineer and have the equipment invested so 40 cents PIC is a no brainer. Where I work the owner has someone working who writes programs PICS. I can tell you there is a frustration that comes into play especially when it turns out the PIC won't do what they thought and then have to redesign for different device with more pins or memory or a function. You might say well they didn't read specs closely or understand limitations etc.
Besides I enjoy designing with discrete parts. I know there are ready to go flasher boards out there for alot of money that has a few parts on them that will do the slow on off and detection, but whats the fun of that? Each to his/her own I guess.
