We have had more than normal frozen precipitation here in TN this year. I have had a chance to 'see what it'll do' under quite a few different road conditions. The main concern for me is how the TCH would handle icy conditions. We have a lot of freeze/re-freeze which leaves that lovely black ice in spots. I don't really have an issue with the VSC in the way it shuts down the power. If it protects me from destroying a half shaft that's a good thing! I have been able to accelerate on ice and have confidence that with good judgement on my part the car will move forward at a reasonable rate when I need it to go. I've actually been pleasently surprised at how well it will accelarate on ice. If I lose momentum completely going uphill I can turn the VSC off.
As Jay says under severe conditions we should probably be driving with chains, studded snow tires (legal in TN), and/or 4-wheel drive vehicles with more ground clearance.