Ok, thanks all.
In principal, the idea is that for each press of a button, my idea was that the ic would jump from one resistor to another. That resistor would change the PWM from say 25% - 50% - 75% - 100% Duty and drive the LEDs.
However, since it would require 1 - the 4017 decade counter and a PWM signal (maybe from 555), perhaps as ebastler mentioned, maybe i should throw an 8-bit msp430 or similar that could do it all. That way I won't need either a decade counter and a 555 timer either.