Hi,
I have done something similar before. You mention frequency to analog conversion - that's precisely the principle I used. Basically you count your pulses (cycles, level crossings, etc.) and feed them into an integrator. Mathematically it works like this:
F(0) = 0;
F(i) = [ F(i-1) + N(i)/T ] exp (-t/T);
F(i) - frequency after the i'th iteration
N(i) - number of pulses detected during the i'th iteration
T - the integrator time constant
For a fixed frequency the estimator output stabilizes at N/t, but if the pulses stop coming, e.g. N=0, the output will decay to 0.
Use smaller T for a more "responsive" frequency estimator, larger T for a more "steady" one.
Hope this helps! Zador.
P.S. Here's a link to a previous discussion on pulse detection: