Is the idea in the subject line sound? For example, let's say I want to accurately limit my power supply's current output to a range of 0-500 mA. If I use an N-Channel enhancement mosfet in its saturation region and vary Vgs with for example a DAC between the threshold voltage Vth and Vdd - X, where X represents whatever voltage will cause the current to be limited to 500 mA, I should be able to accurately control current for a load, assuming that Vds (i.e., the power supply output) is relatively constant.
Is this sound?