I just use plain zip now as it is easier.
Let me again stress the point that i don't really like dependency checking as i currently don't see a nice way to do it. The dependency graph needs to have a total order because we need to feed physfs with an ordered list. Total ordering like topological sorting only works when the dependency graph is acyclic. And i can easily imagine getting cycles if this kicks of, e.g. the smallest cycle of two addons depending on each other (probably 'cause of maps or tilesets). The only solution i see is to split addons to get the dependency graph acyclic (worst case every map, tileset,... on it's own). Just don't overuse this virtually merge function.
The problem with total-conversions is only the menu. Just treat the menu separately. You can only have one enabled anyway.