I've seen a demonstration of a solution on the YouTube channel Two Minute Papers - it was actually about an algorithm that blended animations so that the transitions looked natural.
Characters blended to the hand written, custom, euphoria behaviors in certain situations… it handled falls, stumbles, deaths, etc. Generally it replaced ragdoll physics but wasn’t used during most character movement behaviors.
The developer did a presentation at GDC 2014 on it: https://www.youtube.com/watch?v=LNidsMesxSE