DP, what caviller said was really HOW traction control works, but not WHY it works.
To answer your question, your system is working just fine, the system need a little time to control the spin. It's not just spin and no spin like a switch, there are mechanical forces at work here and it need time to control it.
If you switch TC off and floor it at a stand still, the wheels will spin for about 5 seconds but with TC on, maybe 1 1/2 seconds. (tried it today
)
As for the speed limit of around 18mph, the Ody doesn't have the power to spin it's tire at or remotely near that speed, so a all speed TC system is just a waste of money.
TC and ABS has the exect opposite function. While ABS tries to prevent the tires from locking up (kind of like increasing the tire speed so it is at the same speed with the road), the TC tries to decrease the tire rotation relative to the road (slowing the tires).
Because you can lock up the tires at high speed if enough pressure is applied, ABS works at all speed, but it is very highly unlikely the Ody will be able to spin it's tire at a moderate speed, so the system only works at a lower speed.
I think you got TC confused with stability control. TC only has function during acceleration to keep the tires at the same speed relative to the vehicle itself. Stability control tries to prevent you from spining.
BTW where in Toronto do you live?