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Turn a LED on and off with a slight delay only with passive semiconductor (a capacitor). The potentiometer regulates the length of the delay.
When you press the push button, current flows from the white cable (+5v) to the potentiometer. Then, it goes through the capacitor to ground. During that period, little current is going to the LED, until the cap is "charged", i.e. it's full, so no more current flows through it, and everything is now available to the LED. That's the "fade in" effect.
When the push button is released, the LED gets the available current form the cap, until it's drained, and no more electricity is available, thus turning it off.
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http://amara.org/v/Bbi5/