Yes this is possible, especially the revised engine code that I have now submitted which simply spawns an empty actor and adds an instanced static mesh component to it, as per Epic Matt’s request!
The reason this is an editor integration is so that instanced static mesh actors can be created, edited, and recreated in the level viewport itself, as shown in my 3 videos in first post.
With the simple press of CTRL + i, or CTRL + SHIFT + i, you can make all selected static mesh actors into a single instanced static mesh, or break an instanced static mesh back into individual editable actors!
Rama