Noel Borthwick [Cakewalk]
Today no it sends the entire wave file. I was thinking about this same thing recently and I agree it would be much nicer if it bounced the selected region down automatically. Maybe I'll try and hook it up in my "free time" :) This is quite different from Melodyne ARA editor integration which is much more sophisticated and requires the editor to be able to stream the audio on its own via VST3.
If you do this, I will build a golden statue of you in the town square and make the peasants bow down and worship it.
There is a sort of workaround, which is to split out the part you want, right click it, and select "apply trimming". Which is a LOT of clicks.