Dual classing wouldn't really be possible without simulating a lot of stuff due to client limitations. Also, you would still need to relog your character after switching classes as it will boot you out when you do a class change so it can take effect.
I think the rest of it could probably be done with some creative scripting using the existing code, but I don't see much of a point to it. As you said, this isn't much different than just starting another character. Yes, you are limited to 10 characters per account, but that is more than enough for most people, especially when it is free to make as many accounts as you wish.
If anything like this was going to be implemented in the official source, it would be shrouding. I think Derision had done a little work on it a ways back, but never committed anything since it wasn't complete. It is pretty complex since it requires managing multiple inventories and other information that would be a ton of work to make it all work as it should.
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