In my opinion, the TC is neither cheap nor nasty. For its time it is was a great step forward. Of course, it is much better when it is on all four wheels rather than just two. Open diffs can leave you in 2WD regularly, and TC can save you in many situations, no matter what your offroad driving experience. All it was designed to do was get you moving again if you lift a wheel really, and it does that, very well, in a large percentage of offroad situations. If it can't save you, then you should have chosen a better line (just like you needed to do with open diffs).
No doubt lockers are better, much better, but LSDs -can- wear out so much that they are completely ineffective and without any warning.
I will also say after extensive off roading with a L322, that its TC is better than the P38 (as you would expect). I suspect it is just that the TC ECU is so much faster at detecting a stopped wheel, but also I think that my P38 VC may be 'more viscous and less coupling' than new
. My solid axles and P38 TC do not overcome the perceived limitations of independent suspension and L322 TC, especially when the L322 is sporting mud tyres.
If you took the TC off the P38, I think that it would be a much less capable beast off road, and no different on road, therefore its TC cannot be considered cheap or nasty.