With the several wheeling trips and bad weather conditions that I've experienced so far since buying it, I don't really care for the loss of traction that is needed before the TC kicks in. I see this as an additional aid to help out in all my conditions. Here's an explanation as to why:
The TC will system to try and duplicate the effects of a mechanical LSD, but the system has flaws. If the TC system senses wheel spin outside a predetermined parameter the system applies the brakes to the spinning wheel, which transfers power to the opposing wheel. If the opposing wheel begins to spin the system pulses the brakes on both wheels, if this does not mitigate the wheel spin the throttle begins to close to limit torque production of the engine. This is a passive, or after the event, approach to limiting wheel spin.
LSD's mechanically couple both drive wheels together. The wheels are always coupled, which doubles the effective contact patch to the road. This increases the threshold at which the wheels will start to spin dramatically. Unlike the OE solution, the wheels may never spin and TC will not intervene, this is an active approach to limiting wheel spin.
Now with an LSD in place, the TC system will only become an additional aid and help to further lock up the rear end in severe traction issues.