There is no phasing with velocity crossfade in sustaining vsl instruments. They are different samples, and do not phase at all. I have done extensive use of velocity crossfade with almost all the instruments - solo as well as ensemble - and they are remarkably free of phasing. Nevertheless, the crossfade is most effective in 4 velocity samples, however, you can use it with the two velocity as well- for example, the horns a8 sound better with velocity crossfade than they do with the pure original samples for certain crescendos and diminuendos, and dynamics such as mezzoforte that are not actually sampled and the difference is not distinguishable, especially in an orchestral context.
The use of expression controller is purely an amplitude change that is done for adding to the timbral dynamic changes. It is very important, but can never subsitute for an actual dynamic sample crossfade because that involves timbres as well as levels. It is best used AFTER programming the velociity crossfades to do additional level changes - especially extreme diminuendos - within a certain basic timbre.