I can speak to part of that. I had dabbled with cheap diodes for use as varactors even before I came across Fred's discussion of it, but this was for improving pitch linearity, and seeing his writings reinforced the idea that it might work. Back when I was looking at ways to add a little linearity shaping to the basic Etherwave I was doing some experiments with back-biased rectifier diodes (what I had on hand that had large reverse capacitance) in series with a various values of fixed caps to tame the overall capacitance change. This was purely a concept test to see if I could easily get the diode in the oscillator circuit and biased without too much trouble and to see how the oscillator would behave.
It was actually quite interesting to see in action. I connected an arbitrary waveform generator to the "varactor" diode and was able to create all kinds of warbling effects, noise, and even vibrato. The relationship between the diode voltage and the capacitance change and ultimately the frequency change was terrible and would have required a contoured diode voltage, but that was worth doing if it looked promising. And I never did look into better diodes - I still have some abrupt and hyperabrupt varactors around here somewhere from my dielectric-resonator VCO days, but I'm pretty sure that the capacitance is way too low to be of value. At the time I think I was conditioning the pitch-proportional output voltage from an EW Plus CV board to feed the varactor bias to pull or push the middle and stretch the compressed high end. This was many years ago, and of course this all got dropped like a hot potato when Dewster's D-Lev came along with a better way to do it.
But what you are talking about for timbre alteration certainly seems possible, at least as a pretty easy experiment. It's hard to predict favorable outcomes, but I'm wishing I had thought of this to try at the time. It might not take much, even with a terribly non-linear rectifier diode for a varactor, to get some surprisingly good or terrible timbre changes.