I've been looking for a bit of information on this and landed here. Coming from a wood working standpoint, whether I do a feedhold or a cycle stop, I would really prefer that the Z axis would raise the tool out of the material. If I'm cutting MDF for example and am using vacuum, the last thing I want with either situation is to leave that bit spinning in the material.
I would like to see the option to raise out of the material to either a set safe Z height in current coordinates or to a specified height in machine coordinates such as just off the upper Z limit switch. This would be my preferred option for both feedhold and cycle stop. Feedhold being something minor needs attention and I can continue whereas cycle stop would be more serious, but not an emergency (like I need to keep an eye on this, but really need to go to the bathroom or something else that may take a bit longer).
Scott