This method has the limitation that the background colour of the canvas must be solid and must obviously match the colour of the rectangle used to apply the fade effect. The final result is as follows:
I was also interested in creating skew type effects (as commonly seen on coverflow type applications). Unfortunately, you can only apply affine transforms in HTML5, so you cannot easily perform perspective effects. I did, however come across an interesting method to simulate this effect. The method involves taking an image and dividing it into a series of slices, such that the height of each slice is scaled down progressively. A more detailed explanation is outlined at http://stackoverflow.com/questions/3836036/mode7-like-perspective-transform-in-canvas.
I created some experimental code to test this (also with the above reflection effect). The following shows and example with my slice width set to 5px and 25px respectively.
Written by Rob Nowik