Chris,
I think once you have a moderately complex diffusion model (the mixture-averaged model counts), you start to see some interesting non-intuitive behavior such as this, or such as superadiabatic temperatures in premixed flames. It would not surprise me if the only case in which the variation of the mixture fraction was guaranteed to be monotonic was if all species had the same diffusion coefficients.
I'd also think that implementing a real diffusion model in mixture fraction space would be quite challenging.
Regards,
Ray