I bring this story up all the time. It's tragic that it was never implemented! I know you could read it as a story about CEO capriciousness, but to me it highlights how far Steve was willing to go to make the Mac playful and enjoyable. Back then, even the idea of dragging a file into a little trashcan was delightful.
Steve lived on for quite some time in an undocumented key command you could use in the Finder. I forget the exact sequence; ctl-alt-cmd-shift space or something. It has become more broken over releases and may be gone now. We added it to make all animations go very slow. We would invoke it at Steve’s request in demo to him and he would open and close windows, show and hide sidebars, enter and exit TimeMachine and more. This shipped in numerous version of OSX.