Thanks Backdrifter, I wanted to start this topic for quite a while.
It is interesting that Supper's Ready and Carpet Crawlers kept the fade-out even in live versions! Or at least what an emulation of a fade-out becomes when played live. These songs cannot have a better ending, the fading is like the main hero riding into the distance at the end of a movie.
I don't have a problem with fading down in a live performance. Genesis have always been great with dynamics. In these cases, they fade down to a true ending.