No. The camera module's preview system is quite crude: it simply tells the GPU to overlay the preview on the Pi's video output. The preview has no knowledge (or interaction with) the X-Windows environment (incidentally, this is why the preview works quite happily from the command line, even without anyone logged in).
That said, the preview area can be resized and repositioned via the :attr:`~picamera.PiRenderer.window` attribute of the :attr:`~picamera.PiCamera.preview` object. If your program can respond to window repositioning and sizing events you can "cheat" and position the preview within the borders of the target window. However, there's currently no way to allow anything to appear on top of the preview so this is an imperfect solution at best.