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Ever since my game DozenRooms, I've been interested in adding environmental sounds to my game in order to provide slight immersion and detail. I only ever focused on video and graphics rather than sound, even in video editing. So, I made a short level of a game I made up on the spot and added as many environmental sounds as I could. You can check it out here:
http://www.youtube.com/watch?v=Ml9P0Py_25s
I think these things should be used more often in games. The main issue I have (perhaps this can be added in reloaded *wink wink, nudge nudge*) is the fact that sounds will stop instantly when leaving the zone. This can be done by making a similar sound but lower volume to create the illusion of a noise getting quieter, but it consumes memory, time, and you can still feel the sudden stop.

What do you think of my first major attempt at environment noises?

I think some of these affects work very nicely, and I agree sounds like this aren't used enough in games. However, how much memory does an additional but quiet sound cost? (like the method you described)
If it isn't much then I don't see a problem, even if it requires extra effort in going for that effect.

Very nice. It's my opinion that sound is what really sells the atmosphere. Not always easy finding or creating the right sounds and soundscapes, but it's absolutely worth it.

One thing in that video though, the rain faded out, and faded back in. Why not try to get it looping seamlessly? Unless of course you're trying to avoid spontaneous sound syndrome.
FPSC's got a real bad case and none of the doctors here seem to know how to cure it!