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You take a scene and animate it with key frames.. between those, objects get interpolated. E.g. you can set splines where characters walk along, you can set animation cycles on key frames, set bone key frames, set certain particle emitters on that.. like a timeline. Just ideas..

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I was thinking of the traditional AVI cutscenes but even using in-game elements, I don't see how you could create an application that would make this more efficient.

And trying to make an application that would effectively couple to the multitudes of ways that people make their games sounds counter-productive... you either have to modify your code to the Cutscene creator standard or you "tweak" the Cutscene generator to fit your code.

And after all, the creator you describe sounds just like different settings within the game... setting paths and bones and particles, isn't that what 3DGS is for after all? Sounds a lot easier to just disable all player control and then just program the cutscene yourself.

Doable? Yeah, but in the same way that TUSC is doable!