Hi Brandon,
We actually use something fairly simlar to the deployment strategy you describe. It's pretty highly customized to our use case, though, and it was originally designed for PAM 3.1, which predates the use of content packages (which may fit your use case better). The process looks something like this:
1. During development, all of our automation objects are stored in AccuRev as individual XML files. When one of the objects is updated, we export from CA it and update the XML in the development stream.
2. During our nightly build process, a custom Perl script iterates over all of the automation objects, strips part of the XML wrapper, and concatenates the files it into a single XML. (This feature is likely obsoleted by content packages these days, but since it still works, we haven't moved away from the old development strategy yet.)
3. The single XML is now a published artifact which is distributed with the build. (We don't source control the single XML directly unless it's a milepost / release version, since it's re-creatable from the source.)
That single XML can now be imported as a single object, and contains nearly all of the processes that we use. We do this step manually because we generally pick and choose which builds we're going to execute against, but there's no reason that you couldn't use a web service call to import the package automatically every time the process runs.
Hope this helps,
Sam