The Visual Studio IDE does this already, but with a different visualization - you can expand and contract nested blocks by clicking the +/- buttons on the left margin.
A nice idea. Personally, I really don't like folding editors, but this would be quite tolerable - you'd want to be able to toggle it on/off easily though. Perhaps someone has already done this for the hyper-programmable editors like vim and emacs?
I think Xcode 3 does roughly what you want, especially with Focus Follows Selection enabled. Individual blocks are highlighted as you hover over them in the sidebar.
Existing SO question with some emacs implementations for lisp:
http://stackoverflow.com/questions/318785/emacs-mode-that-highlight-lisp-forms
I'm the author of Codekana. Indeed, what you describe above was the main goal for the product. BTW, I'm about to publish an article about the "making of" and the underlying technology, which is pretty nifty. It will probably be available next week (March 26, '09 or so). Recommended reading, if I may say so myself.
The reason Codekana only provides outlines, instead of a colored background, are limitations in VS's text rendering extensibility. I will hopefully be able to implement a solid-background version at some point in the future, although it will definitely require serious hacking and "rocket surgery".
I would have commented above, instead of providing another answer, but my reputation doesn't allow commenting. :(
[UPDATE: Thanks for the upvotes, now I can comment!]
You should try this Addin and you will never work in visual studio without it, http://www.jetbrains.com/resharper/features/index.html
PS: I'm not affiliated with this company or product but I'm an addict using it and I can never work without it, it saves me alot of time in my coding tasks and code exploration and debugging.