The path fading option in TikZ is obviously not working for horizontal lines. For plotting constant functions as well as for drawing a line between two points. Making them slightly tilted solves the problem. Is this a know error and is there some way to work around?
Here is a minimal example
\documentclass[a4paper,11pt]{article}
\usepackage{tikz,pgfplots}
\usetikzlibrary{fadings}
\begin{document}
\begin{tikzpicture}[>=stealth]
\begin{axis}[scale=3, domain=-1.1:6.5, xmin=-1, xmax=6.5,ymax=2, axis lines=none]
\addplot+[no marks,red,dashed,domain=-1:6.5] {0.7};
\addplot+[no marks,red,dashed,domain=-1:6.5,path fading=east] {0.8}; %not working
\draw[red,dashed,path fading=east] (axis cs:-1,0.9) -- (axis cs:6.5,0.9); %not working
\draw[red,dashed,path fading=east] (axis cs:-1,0.9) -- (axis cs:6.5,1);
\end{axis}
\end{tikzpicture}
\end{document}

++(0,1pt)to the\addplotcommand and to the path. – Jake Mar 11 '13 at 18:48append after commandtype argument. – Andrew Stacey Mar 11 '13 at 20:19