Thanks for the comments,
Yes, I tried animating this when the new time-slider feature came out.
It works, but because each image has to be linked to a new model, the initial loading time is painfully slow.

With just 10 images it took several minutes before all frames were viewable. Add to that the download time, I figured most people would just give up before it loaded.
At the moment, I think it's something much better suited to a normal ground overlay. Like the
Katrina animation on the dynamic layers mb.
Re rising sea levels:
Yes, it's an interesting idea. But I'm not sure whether it could currently be made to work on a global scale - the polygon approximation of my model, compared with a perfectly rounded globe, means its altitude is only accurate to within a kilometre or so.
Over a smaller area, with a much more detailed mesh, I think it could work pretty well ... bearing in mind the quality limitations of the Google Earth terrain.... especially, like you say, to simulate rising levels over time.
James