No, the Edge can do vertical stretch and horizontal squeeze, but these are both features that require an anamorphic lens as well, not just from zooming or otherwise.Something to be aware of regarding using the Lumagen to shrink for 16:9 content:
All of the viewing shown in the first video clip means that the projector is first zoomed so that a 2.35:1 image fills the 2.35:1 screen with the black bars being over spilt top and bottom. What this means is that you only have 1920 x 810 (approx) pixels on the screen. When the 16:9 button is pressed this reduces the image width to approx 1440 pixels and again the same 810 pixels height, so it is not at the full resolution on the disc, ie it is downscaled to 1440 x 810 for 16:9. I've done this myself (before I bought my A Lens) and for menus, trailers and upscaled DVDs it works well enough, but for BluRays just be aware that you are downscaling and therefore losing resolution.
I won't say anymore about the 16:9 NLS function as I can clearly see how fat the man on the sides of the scene in Avatar looks, which is also typically how most TVs look when they stretch 4:3 to fill 16:9. Sure it fills the screen that you've paid for
but not in a nice way IMHO. If you really have to fill your 2.35:1 screen with 16:9 content, I'd suggest that you set up a spare memory that can crop the 16:9 down to fill on the 2.35:1 screen, but of course you'll probably have some heads cut off occasionally and lose text at the bottom of the screen (like when locations are shown, or subtitles). I've done similar accidently by watching a 16:9 film with my A Lens in place and vertical stretch enabled and I didn't notice until after the film that it wasn't a 2.35:1 film.
I really like my Lumagen, but I just felt that the side effects of doing this should be pointed out. Personally I'd only use the shrink function for menus and trailers and rezoom (or use a lens memory) to watch a whole 16:9 film at full resolution.