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The reason the 4R7x transmissions take a moment to downshift from 4th is because the transmission needs to fully release the overdrive band before the forward clutch comes back on. If that doesn't happen then the transmission becomes mechanically locked. Kind of like park and is bad.
I have 0 opinion on a light or switch though, I only wanted to address that one concern that you voiced to try and explain why it has to be that way.
Darrin
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