Hi Ehmie,
As it is a “Deformer” I don’t see any other option than to move points around, hence the effect works only in “Points” “Maps” and “UV” mode.
How would a rotation, for example, can be used with a falloff…with that I mean literally, a bended (falloff!) rotation. Yes, I can see the idea could work for groups/hierarchies work on the axis—not gradually, so child objects might get a different treatment. However, my understanding of anything Deformer is, that it does care for points only.
Perhaps, outside of the Morph-Tag, you might try a MoGraph Effector in Deform mode. (I’m aware that the definition I just gave is not valid for the “Deform” mode, as it contains the options for PSR changes.)
If I miss something, Please let me know or check with the support, in case you categorize this as a technical problem.
http://www.maxon.net/support/support-questions.html
All the best