Actually, yes it has! And it's pretty fun, too. It's called SWM Campaign Edition (SWM:CE for short). Here's a link:
https://bswmce1.runboard.com/

We've done pretty much the same thing in vassal and online play, should check it out

Looks very interesting, im going to read that post but my first idea is look at real time strategy games. First thing that comes to mind is Halo Wars, if you have a unit survive many battles they gain stars over their head. Maybe do some sort of function like this, but I would measure it by points of killed. Maybe (a very loose idea) all troopers star as rookies, once they kill 50 pts of figures the go to experienced and get +1/10 to all base stats, when they kill another 100 points they become veterans and gain twin, or something along those lines.

The link provided above in the first response has everything worked out and it makes a lot of sense. You don't need to add a story or campaign to it either. You could adapt the rules to fit skirmishes and just level up characters as you play. I think each player should have a limit of how many characters they could have at a time. In Pokemon, for example, you can only carry 6 pokeballs at a time. In Lucas Arts' "Gladius" (a must play console game where I drew this idea from), you can only have 20 gladiators in your school at a time. The trick is to build up a great number of diverse characters that can take on any challenge. The less characters you field, the higher the amount of XP they would gain. The more characters you field, the less XP they gain but the better chances of survival.

I am going to play SWM using the rulebook before implementing SWM: CE's character system into skirmishes. And if we are feeling ambitious enough, we may try campaigns. But that would involve a lot more maps than I have. I only have a few double sided maps and the terrain tiles from the RS starter set.

I know what VASSAL is. Is it very active these days? I am loving the atmosphere of this website. Everywhere else is either deserted or just dead links. I don't understand why people would just sell off an entire collection and quit playing a game because it's not produced anymore. I am just starting and am very excited to have the pieces I have.

Also, that link provided above has some dead links to downloads and is not well managed and can be confusing at first. I found the rules and companion pieces for PC and GM for anyone interested:

http://www.atlantaswg.com/index.php?option=com_content&view=article&id=136:swmce-materials&catid=39:swm-ce&Itemid=92

After reading that, that first link made a lot more sense.

The CE rules are the ones that I use. You'r right they are complicated, but it is very realistic. It is like playing a mini version of KOTOR.

Kotor is based off of star wars saga edition ;), which is a great RPG. I feel like if i'm going to go through the trouble of learning CE, i might as well just use the Saga edition rules. I don't know what CE offer that saga doesn't... my assumtion is that it is somewhere in between SWM and SAGA, as it probably doesnt include rules for certain skills like knowledge and social capabilities, but does pull in the more skirmish based abilities like classes, tech skills, and possibly limited talents and feats (which are used as to gain bonuses as well as new applications of existing skills/abilities).

The biggest problem with SAGA, and that CE may have fixed, and that SWM struggles to not be the opposite of, is the power level of force users. Saga force users are much more like what we see in the jedi... which is force users are > non force users, and there is not much competition. Even character's who are trained to deal with jedi, like Jango or boba , have to use every trick they have to compete, and sometimes (as the fett's have shown) thats not enough. It makes it hard for non-force users to really shine, and as characters level, it actually gets worse.

CE may have some middle ground.

SWM has mostly figured it out at this point, but for a long while, melee pieces just couldn't compete with the shooters. Even now, on the wrong map, jedi don't stand much chance against your cad/rex/mara/boba type characters.

What are these two games? Can they be played with minis? They sound interesting.

One thing confuses me for SWM: CE.

How do characters gain special abilities and commander effects as they level up? Are special abilities and commander effects on the stat cards the feats? And how do I buy them? Do I use the SPs earned? I thought those just directly influence the character's stats. Feats seem to have a cost so I know I just don't automatically get them upon reaching a new level. Can I forgo buying earlier cheaper abilities to save up for the more powerful expensive ones that don't require prerequisite feats? Also, are all of these feats actual special abilities from SWM or are there new SAs and CEs added from the RPG?

That's all for now. I'll likely run across more confusion when I actually try to implement this system into a game....

Well I think reading through the materials here http://www.atlantaswg.com/index.php?option=com_content&view=article&id=136:swmce-materials&catid=39:swm-ce&Itemid=92 well answer your questions.

But, I will answer them one by one for you. If I am wrong anyone else can feel free to jump in and correct me.

How do characters gain special abilities and commander effects as they level up?
In the Player Character Supplement in the attached link there is a chart for each character when it levels up.
Say you are a level 1 Jedi Gaurdian and you have enough experience to now level up to level 2. You can choose one new feat (Special Ability), One new Force Power, and one new skill. Each feat/skill/force power has a point cost. In order for you to obtain that ability you use the following algorithm. You take your level (in this case level 2) and add 3 to that number. So in the example, you may choose any feat with a cost of 5 or less.

Also you gain experience not just by killing people. If you play a full campaign with a Game Master, he will put in challenges for you to gain more xp. For example you get +10 xp if you do not take any damage during a skirmish. It is easier to survive in the campaign edition if you use the D10 system. This system says that whenever you take damage or heal damage, you must role a 10 sided die to determine how many hit points are taken off. For example, I have 50 HP and I am hit by an attack and in normal minis I am suppose to take 10 damage. However, with the D10 system I role a 10 sided die and get a 4 now I only take 4 damage, thus reducing my HP to 46. You don't have to have a 10 sided die to do this however, you could use a 20 sided die and use 1-2 for 1 3-4 for 2 ect. Be careful though, many 10 sided dies do not come labeled with a side that says 10 instead that side says 0.

This is a lot for one question so I, and I can't get around to answer the rest of them right now. I hope it was helpful. But, read the rules through in the link. They are laid out very well and should answer all of your questions.

That is more clear. I was confused about that algorithm. So upon leveling up to level 2, I have five points to spend. Would commander effects be considered a feat as well? And can I save some or all of those points for my next level up?