You should be able to achieve the same effect with by using the eraser tool to 'rub out' the areas of the top layer that you don't want. Set the eraser to a very low value, use a soft edge brush and set the flow to a low value and take your time. More or less the same end result should be possible though it's fiddlier and there's touch less control and finesse.

IIRC Elements has the Quickmask option (the one that covers everything with a red mask) You can use this along with the gradient fill to produce graduated selections that can the be cut using the Ctrl+X command.

Alternatively there's always The GIMP...