I've just heard the Mark Seymour solo album Embedded for the first time in ages. The whole thing, with Neil's vocal swapped for Mark's could be a CH album. And a good one. It already has a suitable cover, and I think we can guess who painted it 
Paradise downunder is possibly the most CH-like song. Even the guitar solo sounds like Neil could have played it.
http://www.youtube.com/watch?v=IW6aCwwOvUE
Having returned to this thread after a gap, I'm listening to recommendations (Squeeze currently). EDIT: The problems of very slow threads, I see above that I've already responded to the Squeeze recommendation.
I like the Redspencer track. But, it sounds a bit more Flying Nun than Crowded House to me.
Again, I like the Sufjan Stevens tracks, but to me they're not so CH like. They sound more like something from Lightsleeper. Maybe with Neil's voice, Visions of Gideon could be a closing track on one of the 21st century CH albums.
EDIT: If anyone sees this thread I'd like their opinion on whether the Mark Seymour track could be a CH track solely with the MS vocal removed and a NF vocal added. To me it sounds as if it could be. But, others may think differently.