Actually, while I've seen no blueprints indicating we'd go in that direction, it would be kind of cool if that were an option. I multi-boot a lot trying different distros, testing silly things, etc:
/dev/sda1: LABEL="**Maverick**" UUID="b7a0df33-53e4-4f0d-856b-0da92ff0d743" TYPE="ext3"
/dev/sda2: LABEL="**Karmic**" UUID="1332b9d0-cf18-4299-9094-12acbdac91ad" SEC_TYPE="ext2" TYPE="ext3"
/dev/sda3: LABEL="**Lucid**" UUID="d252929b-949d-432e-a18c-18f9ae770d28" SEC_TYPE="ext2" TYPE="ext3"
/dev/sda5: LABEL="Backups" UUID="594c3d40-2791-4c0a-8644-d9812545da2d" TYPE="ext3"
/dev/sda6: LABEL="Pictures" UUID="8a3f6c83-cb52-4caf-96b8-5faf2c830453" TYPE="ext3"
/dev/sda7: LABEL="Downloads" UUID="05289ee4-d681-4806-b6fd-aefd784f9323" TYPE="ext3"
/dev/sda8: LABEL="Documents" UUID="571cfad8-68c7-4703-883e-c0baa2a381d4" TYPE="ext3"
/dev/sda9: UUID="80627269-1ccd-4774-b4ea-a5ef8824ffaa" TYPE="swap"
/dev/sda10: LABEL="**Isadora**" UUID="f223fe5d-3acb-4d96-950c-62661ad8714b" SEC_TYPE="ext2" TYPE="ext3"
/dev/sda11: LABEL="**Squeeze**" UUID="0eec2831-7805-437e-a06e-e18ab3268e6a" SEC_TYPE="ext2" TYPE="ext3"
/dev/sda12: LABEL="**Pure Gnome**" UUID="f6062e12-09f1-4f19-b6c2-ad58812d6794" SEC_TYPE="ext2" TYPE="ext3"
/dev/sda13: LABEL="**Peppermint**" UUID="720d719e-e571-4bdd-aac9-718f0ffe2266" TYPE="ext4"
/dev/sda14: LABEL="**LL to MM final**" UUID="8ecdcd5d-6fc8-4e81-aed9-fa20f3b7b079" TYPE="ext4"
/dev/sda15: LABEL="**LMDE**" UUID="22eefad4-870e-4191-87c9-57f4e756411d" TYPE="ext4"
/dev/sda16: LABEL="**LL to MM RC**" UUID="7a90aa0c-2377-48e4-97ad-20283c962abc" TYPE="ext4"
/dev/sda17: LABEL="**Maverick test**" UUID="fad5d0d5-79d1-405c-9e9c-1dd714d39b8b" TYPE="ext4"
Wouldn't it be kind of cool if the Live CD recognized all of that and offered to replace a specific OS?
I no longer use a separate /home for my installs and they all share the same SWAP, but that's something that can be determined by fdisk, parted, blkid, etc.
So I think it's possible that a future version of either ubiquity or the Debian installer (or a new installer) could possibly identify all existing compatible OS's and offer an option to replace any one of those.
I think it's one of the greatest brainstorm ideas I've heard in a long, long time :)
Just because it doesn't currently exist is no reason to "poo-poo" the thought behind it.