Agreed that it's aggressive, but my impression from very limited use is that the additional work is to achieve very precise vehicle speed control. Coming down the back side of a rock, for example, is met with much noise and vibration rather than just letting the vehicle come down smoothly.
It doesn't control throttle to each axle.
It's not torque vectoring in any way. It's simply controlling wheel spin based upon the allowance set in the terrain mode. Perhaps we'll get true torque vectoring (or electric motors!) in the 300. 
Honestly, I couldn't tell you if ATRAC is completely defeated by brake application. The manual doesn't list brakes as a disabling factor, but that's probably not a definitively list. I know VSC is not disabled by brakes, just not sure about ATRAC. Next time I'm out I'll see if I can get a wheel in the air to verify.
It doesn't control throttle to each axle.
Honestly, I couldn't tell you if ATRAC is completely defeated by brake application. The manual doesn't list brakes as a disabling factor, but that's probably not a definitively list. I know VSC is not disabled by brakes, just not sure about ATRAC. Next time I'm out I'll see if I can get a wheel in the air to verify.