Is that a change that I missed too? Maybe what is "off" isn't really off, but I'm pretty sure that I can completely deactivate the traction control on my 2014 4Runner. There's tons of videos about "getting unstuck" procedures where that's the first thing you do. Maybe that has changed in newer models?
I think it depends a lot on the individual make/model, but a WHOLE lot of "Traction Control Off" buttons are really "allow slightly more wheel spin" buttons. Especially when TSC is tied into Vehicle Stability Control systems, completely turning them off is not always possible. On Toyota's specifically I don't know how they implement it, and for that matter, short of hooking up a laptop and monitoring wheel speed sensors and individual wheel braking and diff slipping commands from the computer, I'm not sure how you would know for sure you had actually disabled it.
My new 4Runner has that auto braking system - so far it's activated ONCE and that was only AFTER I was already braking for the traffic in front of me. I'm not sure if it added brake force or if the warning just popped up on the dash.
I think the systems are radar based, so I wonder if putting foil over the antenna would disable it if you couldn't do it from the setup menus inside?
This would also depend on the specific implementation. Some are RADAR based, some are Camera based, some combine the two, and some probably use the ultrasonic parking sensors as well. As far as disabling it by killing a sensor, depending on the programming maybe it'll work, or maybe it'll put the car in limp mode until you get it fixed. I would also be pretty leery of purposly disabling safety systems on a vehicle and driving it around. Seems like a good way to get sued, and unlike the aholes running around without insurance I have assets to lose.