Ashley - While having it skew the collision mask would be nice as an option, I don't think it's necessary - besides, I can imagine many situations where I wouldn't want it to do so, as it could use CPU time better suited elsewhere, since some of the collision polygons could become quite complicated to generate and as such possibly hit performance for a collision mask the developer might not even want to use (I suppose, come to think of it, if it was something like the collision polys were only built if a collision check was done on the object, that would be cool). As I recall, CC didn't have correct collisions on distorted sprites either, but it was still a great feature regardless.
Or another thought - what if it just used the polygons already generated by the distortion grid itself? It would be less accurate, but quicker to generate - although that could result in quite a lot of polygons to check for collisions with.