I have experienced the exact same behaviour other people describe.
I am still using X1 (purchased X2 but not in a hurry to install it as yet).
I am so dissapointed to hear this issue is still unsolved.
It is such a workflow killer.
when I read / viewed the pomotional material from X2, there was so much said about the smart tool being much better / sharper / smarter. I presumed this issue was fixed and was so looking forward to it.
It also makes no difference at my end if I zoom on the track or not. Once the smart tool has decided to edit fades, there is just no way to get it to do anything else. I have to remove the fade first.
I hope this gets addressed sometime..