I torrented an early screener for Part 1 last week and seeded it for a few days. I will prepare another screener that extends into Part 2 when I reach the 30 to 40 minute mark (maybe later next week).
@Commander Courage
The fade-to-black at the end of the early screener was just a last-minute join, so that viewers could see how the time arc worked. The actual transition (which you can see below), fades from the last shot of Yoda directly to the star field with the approaching shuttle. So, as you suggest, the transition here is continuous.
Now, there are four fade-to-blacks in Part 1, which are identified below with a rough time stamp. It wasn't until I prepared these clips that I realized all instances occur in the final minutes of Part 1. I believe (and hope) that it is the story flow itself that influenced my decision here. I am not using these fades arbitrarily, so let me briefly explain my thinking for each one, and then you (and others) can elaborate on why you think they do or do not work. It's funny that you mention pace, because pace is foremost on my mind whenever I use fade-to-black as a transition.
fade@17.0m (emperor address 1)
Here we have a strong, semi-climactic sequence followed by a somber scene. The fade-to-black is needed to bridge this disparate mood. [Note. Technically this is a CUT to black followed by a fade FROM black.]
fade@18.0m (emperor address 2)
See previous explanation
fade@19.0m (Yoda confronts Sidius)
Subject moves from scene A to scene B without any intervening action. We need fade-to-black to satisfy passage of time.
fade@22.5m (the duel)
Again, used for passage of time.
fade@24.0m (13 years ago)
This transition, which is NOT fade-to-black, is used to support a major time jump without pausing the movie.
About the overlay text...
(1) The black region is probably not an option because roughly 50% of the letterbox is lost to overscan. On my 16:9 TV, for example, these Cinescope DVDs produce fairly narrow black bands.
(2) The font is actually a member of the Franklin Gothic family, but I completely agree that the choice of font is important. Too many font variations are just as bad as too many colors. The suggestion to adopt the same Gothic font used for A long time ago... is a good one. I will also have to anticipate the subtitle typography.