Is there no function or setting in the system to detect and cure dead air? Do we have to edit every mp3 to assure that the fades are quick and the files don't contain empty tails?

I know that in several products there is a detection algorythm that will imediately trigger "end of song" when a certain db below is detected in the last :05 of a song file.

Anything we can do other than edit the entire music library to ensure tight fades and no dead air? The fade settings don't help with this as we have tried them many times to no avail.

Depends what "system" you mean. Liquidsoap can do it. don't think ices can though.