Slot description isn't going to be much help. It will let the responder describe itself to the controller, but the Slot Description PIDs don't allow you to configure the device.
I would implement what you're describing with personalities and sub-devices. Present a sub-device for each channel. Each of those sub-devices would have 4 personalities to define its behavior (On, Off, Dim, and Switch). The advantage of doing it this way is that almost all controllers allow you to set the personality of a responder, and you can give each personality a human-readable name string that makes it clear what each one does.
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