I half solved this problem by adding a shader with a gradient image, in the material. Somehow that extra image shader on top of the photo does exactly what I want: it eats away at the bottom of the image and lets the naked quad color shine through. No normal mortal person can comprehend how the programmers designed the gradient system. It requires NASA skills.
However, I can start all over again, as a template user can't update an image inside a material the proper way. A user can only change a simple image on a quad. Not mess with a material structure, like I thought was possible.
All kinds of new problems have emerged. All related to masking and alpha, which is the weakest aspect of the XPression.
#XPression