If the traction control system is activating the brakes (your post about seeing pressure from the bleeders), shouldn't you focus your troubleshooting in that area. I have been watching your logical process, you have pretty well covered the engine related components. Building a new motor will perhaps be therapeutic, and certainly will give you more power. But if the sensors and or module for the traction control are malfunctioning, having more power will not make you go any faster.
I have never messed with the T.C. system, but as smart as you are, you may be able to figure out how to check it. There should be some sort of gyroscope device that monitors angular momentum. The abs sensors probably play a role as well, comparing wheel speeds, that way a separate set of sensors would not be needed. There is a sensor on the steering shaft under the dash, I believe, that provides information about requested steering angle.
Traction control basically limits engine power, applies brakes as needed and screws with your mind. Government goals all accomplished.
Can you disable your traction control by pulling the fuse? Pushing the switch to disable the traction control may not turn it off, if it is malfunctioning!!!
Good luck,
Larry