You make your fades and overlaps in the lanes and the results show in the parent track. I have been saying for some time now that I would like to see more traditional style editing in the parent track but really it's not a huge deal to pop open the lanes and make edits that way. In many ways it's far superior. The only real problem comes in when you have so many lanes that they take more than the entire screen and you then record a part in the middle of the song (as opposed to a staircase along the timeline) but there are ways around that as well.
What I'd really like to see and will hopefully be implemented in X4 is the ability to Hide Lanes and adjust where they are easily by dragging them (actually my ideas are much more elaborate than that but I won't type them up again).
I used to work in an ancient version of one of the competitors that did not have lanes or layers at all and it took some getting used to to work with the new way but after a rather brief learning curve it is far superior.
If you are completely resistant to learning the new way there is nothing stopping you from tracking and editing in 8.5 then importing to X3 to access the far superior mixing tools and environment.
There has been thousands of complaints over the course of the X series from long time Sonar users about the drastic changes but now with X3 even the most vocal opponents to the new way have acknowledged its superiority. You just have to give it a chance. You are basically learning an entirely new DAW which is always a pain but they aren't gonna change it back... which suits me just fine.
Cheers.