I really appreciate the time you've taken to reply and offer suggestion, but I must admit, I was seeking another avenue for accomplishing this.
My goal is not to "camoflauge" the player in the literal sense as much as it is in the figurative sense. In real life, you could lay in a field or bush and from 20 feet away, if you were standing still, someone walking by would not notice you. Granted they're not expecting someone hiding, but regardless that is near impossible to do in these games currently, and I'm wondering why and if there's a way to alter that.
If you walk by a player model you will notice him - at close range it's because you know the map like the back of your hand, but at long range...there's a different explanation -- you see the model like a func_illusionary, updating every frame as you walk by, unlike its surroundings, and it sticks out. That is what I'd like to change.