I had the crazy idea of adapting the SSAO technique to work in 2d, and after a few days of tinkering I’ve actually got some nice results:
http://www.triangularpixels.com/DreamCascade/Screenshots/AmbientShader_FinalComposite.png
Since I figured other people might be interested, I’ve done a proper write up, with more screenshots and shader code for people to pinch. Enjoy.