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So, a question: What can you do with skill selection slots?

I mean other than select a skill.

In Nightbane they can be used to get Sorcerous Proficiencies, or get rid of Sorcerous Limitations.

There is one OCC in Rifter.... 52 I think where you can choose a skill OR a minor psi power with each slot.

What else is there (preferably canon or rifter as opposed to house rules) that you can do with an open skill slot, especially for level-up skills?

I've never seen it used anywhere else myself.

Rifter #30 has the option to spend skills to gain all sorts of other things (psi powers, spells, Martial Art abilities, etc.)

On the forums there was much discussion of doubling on a skill to increase its ability.
Like an extra 10 or 15 percent chance, or for weapons a bonus to hit.

I think that was codified into an optional rule in Mysteries of Magic.

This is a rule that applies to "Domestic Skills", you can take them a second time for a +10% bonus and to be considered of professional quality.

I assume some GM's and house rules have adopted this to apply to all or most skill categories, not just Domestic.

Correct. And as Wulf stated, in Mysteries of Magic the rule was expanded (as well as in Rifter #30)
The MoM expansion is an optional rule that allows you to continue spending skill slots to continue improving a skill. Each additional slot improves the skill, with diminishing returns.
But if you throw enough skill slots at it you can get some truly impressive skill scores. Especially if you have either a skill that has no percentage cap, or the ability to exceed the 98% cap through other means.

Rifter #30 has an optional rule that expands the professional rules significantly providing new tiers, as well as expanding on what is professional and "world class" (new term for three slots). Based on if you use OOC/Secondary skills and the like.
It is, in my opinion, very good and was one of the first Rifter articles that I made a permeant part of my house rules.

the Superstar article talks about using extra skill slots to increase a skill, 10% and more can add a little more, 7, 5. 3%

There are a few skills scattered around different settings that unlock abilities:
Principles of Magic (Through the Glass Darkly) allows on to "utter incantations correctly." Congrats, you now know how to cast spells. What spells? None. It doesn't provide a mechanism for starting spells or learning new spells. Sounds like a job for sorcerous proficiencies.

Acolytes from the same book change exchange Secondary Skills for psionic powers at character creation. Later, OCC related skills can be traded for more powers.

The Divination skill, from the same book, is self-explanatory.

The Meditation skill (BTS2) mimics the psi power *and* speeds healing.

The mystic H2H skills from N&SS and MC include a whole bunch of bundled skills, bonuses, and powers.

There's not a lot skills can be used for besides skills. But there's a few things out there.