This feature exists in the Auto desk suite. When enabled it shows a list of entities that are within a close proximity to the selection point. It is extremely useful for selecting the correct entity when they are overlapping or too close too separate easily.
Currently in MO the only way to isolate the entity is to turn off all other entities or hold the cursor over the entity to display it's properties and hope that the correct entity is the one highlighted. This is slow and cumbersome.
The Autocad one only shows the entity name and colour. Magnet could improve this design by showing the full entity data in a list (as it does now) but show all entities and then select the one you require.