Fraxel has recently had FDA approval of a few new handpieces for the Re:pair laser. One of them is made to do body treatments as you are desiring. It will take a few months for those to be manufactured and in the hands of the physicians. The crepey skin can be improved but not redundant skin - this would have to be excised.
Answer updated 4/23/09:
I now feel that the best non surgical approach is Thermage. The new Fraxel handpiece hasn't really turned out to be a revolutionary change.
I have recently added Thermage to my office. I have seen several clients who have had surgery that have been left with very large and long scars. Thermage seems to offer an alternative that has no real downside.




