Well, your supernatural stuff wouldn't have to be your main idea, as you stated. And I thought that the idea of doing a supernatural story using the Morrigan would be a way to free Terry of being the Morrigan. My mistake.
I still think that your idea of Angel saving a baby as a Christmas story is a good one seeing as it would fit Angel's imagery. Maybe this is where you could get your Crimson Dawn story to fit in? These ideas don't seem like an obvious fit, but you could make it happen if you play up the Crimson Dawn villains demonic traits to contrast Archangel. Was Crimson Dawn meant to be Japanese or Chinese? I cant remember. If it is Japanese than This might also be where you could work a up a story with Psylocke/Kwannon.
I would still like a story that frees Dani from the Danilock stuff. I'll sound like a broken record here,but Dani has ties to supernatural stories and would fit well with Angel. I'm afraid that Dani will end up being the character that ends up being most effected by the TO though. There's supposed to be at least one character that gets lasting effects from it.