Enhanced "Group By" functionality for entries

Grouping entries by date is great...but I would love to be able to create an alphabetic index.

I have a bunch of API methods that are generated from code. I'd like to be able to do something like"

A
  Action
  Animate
B
  Button
C
  Checkbox
  Common
...

the tag might be something like

{{ entries:listing folder="blog" group_by="alpha" }}
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