Surface blanking features, like you describe, were popular back in the early 1980s. However, with 80's technology a second target (below the shallow target being blanked out) would also be blanked out. As a result this feature was abandon. Today's technology would do a better job at chopping off target signals based on signal strength, however, would be susceptible to the same thing in that a second target, below a shallow target, would simply add to the first targets signal strength, and thus also be rejected. So in effect, the places you need surface blanking the most, high trash, would be the worst place to use surface blanking, making selling such a feature awkward at best. I can see how in low trash surface banking could help, however, the perception of most is that its purpose (only benefit) would be to use it in high trash, where anything under the surface targets will be obscured.
Rejecting targets based on the dominate frequency would be fairly easy software to write for something like the V3i. Although White's receives continued pressure to "keep it as simple as possible" rejection based on dominate frequency is an idea that may have some traction.
sHoward