Traction control and AH are designed to keep you from getting in to too much trouble as the car approaches its performance limits. But it's important to realize that these features can't contravene the laws of physics (not even Scotty from Star Trek could change the laws of physics). They give you a *critical* edge as the car transitions from "in control" to "out of control", allowing you to "save" what might otherwise be an unsavable situation.
They can do this for you because they are able to do things you, the driver, could never do. They detect and react to situations much, much faster than you could ever hope to realize yourself (assuming you even realize you need to react, which isn't always the case), and they control the mechanical elements of the car with a degree of finess you can only dream about. AH and TC both manage the thottle and engine torque in ways that are impossible via the accelerator alone. And AH can (and often does) apply brake to wheels individually, something you'd only be able to approximate if the car had 4 separate brake pedals.
In general, you will never need to turn off either of these features. If you want to burn some rubber, TC needs to be disabled. Otherwise, except for all but the most skilled drivers, driving in the most demanding situations, AH will unquestionably make you a better driver than you could ever be without it. But, for the drivers in the 0.1% of the population who push their cars to the very limits on a Track, AH can actually be an impediment to achieving the fastest track times and GM quite courteously provided a means to disable the feature. For the 99.9% of the rest of us, it's a "don't care".