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Is it possible to have that link mark all posts in the current forum as read and jump you back to the forum index?

Technically it could but I personally prefer seeing the visual verification that it has indeed worked and has set all threads to be read in the forum you are reading.

But that it would do since there's that "no new threads" icon to the left of the forum on the index page?

Why I'm asking is because my behavior is to click "all threads read" and go to the next forum. Dunno if I'm the minority though,

The no new threads icon only checks the single most recent post in a forum, not past posts, so it is possible to have new threads but the 'no new threads' icon on the homepage.

Ah, ok. Well that kinda settles it.