Passing the on the focus to the client under the mouse makes sense in a mouse driven focus scheme like FFM (but i didn't restrict it, so it can be used with CTF as well)
Whether ensureing the pointer to be under the currently active window makes sense or is sane, i don't know. I know that E17 has it, that it's a complement to the above, and that it's pretty much a one liner. *shrug*
Testing
Yes, focus end up under mouse w/ and in focus chain w/o. Cursor jumps correctly in a single screen setup (moeved back the other screen - but given that xrandr is just a HUUUGE screen area, i doubt it makes any difference)