I know that one area of the home quarter I live on really needs some healing after it has suffered a lot of abuse from holding our steers in and around that area for many years. It's just starting to come back now in grass, but it's still in rough shape and will take another 5 to 10 years to actually be able to be considered a healthy riparian habitat. There's a few other areas on the farm that are (or were, rather, since now they're nothing more than part of what's being sown for corn, canola, wheat, or whatever else is grown there now) great habitat for wildlife, especially in the spring and during the wet periods in summer and fall.
A few years back when I was still in school and taking a forages course there were a couple of people that came in that presented their farm and what they did to maintain and encourage healthy riparian areas on their farm. They had fenced off most or all of those low spots that tend to get water-logged during the wet periods, put trees and willows in and just let Nature take its course. I believe they are the same folks you are referring to, HD, because I do remember they were quite local like in the Three Hills area or around Westlock or something like that. Anyway, they mentioned that they kept the cattle out of these areas for most of the year, and only let them in to graze for three or four weeks in the dry spells, or during drought.
I've also heard that these riparian areas are excellent grazing areas during times of drought. I think it's supposed to save on costs for buying hay if pastures run out any.
That's sorta along the lines of what I've been thinking and considering implementing if/when I get back into the cattle/grass-farmer biz.