I'm thinking the same thing...tow/haul mode or OD off and let the tranny shift by itself.
I've tried several shifting methods with my CSRT8 and, after a transmission flash, use the AutoStick mode and let the car shift at the shift points I set with the Predator, which are set to go at WOT around 200 - 300 RPM below the rev limiter.
Works like a charm.
I haven't raced the truck (it would be pretty damn slow in comparison with the 300) but knowing what I know about how it runs in O/D off mode, where it shifts at a higher RPM holding the gear longer and doesn't slip into O/D, that's how I'd run mine.
Maybe some day I should see just what this thing will run in the 1/4.