Don't require track mattes to be above the layer it modifies (and also allow re-use)

YES! esspecially when you use adjustment layers to warp something but you don't want the mask to be warped.

🙂

Updating the Set Matte effect will not do the trick. Due to the render order, effects are rendered after the transform which will lead to issues when making a comp continuously rasterized.
Picking the alpha layer like parenting would be the better solution.

Either this or update the set matte effect. This is the problem -> I have a layer with animation on it that needs to be used as a matte. So I duplicate it, go into key properties (often with parametric shape layers) and use the expression pick whip to connect them via expressions. Then I duplicate this layer a couple times for different uses in mattes and already I have project with tons of expressions. Precomp this layer you say? Yes, that would work, but only sometimes depending on the project. Just update set matte or make it so you can alpha matte with the pick whip like you can with parenting.

I like After Effects way of Compositing Layers. Can we Make Set Matte work more like track mattes? the Precomping, and or Transform options get a bit tiring, and makes the work flow take longer.

I hate knowing that this will never be implemented 😞 It's just too common sense of a feature for it to ever be included, even considered.

This equals to an UPGRADE of the heavily deprecated "Set Matte" Effect. It WOULD be the solution if it was any USABLE 🙎

Yes please this one would be my top priority if I had anything to do with new AE features

If you select a layer, it would be nice to highlight other layers that a referenced by it. be it by this new track matte idea, that i like, or by any other filter, like displacement map or camera blur.

Rfred, it won't solve everything, but if you're just doing simple transforms, you can apply the Transform effect and then force Set Matte—in Take Matte From Layer—to use Effects & Masks instead of Source from the second dropdown menu. That way you can alter things without needing to precomp.