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2004 C5...if Active Handling switch on console is non-functional can you disable Active Handling by removing it's fuse? Will not turn off until module detects enough errors and turns it off. Makes for a rough ride down the freeway w/brakes being automatically applied on every imperfection in the road until the module determines in error and turns it off...that can take a few miles!
Afaik, you can disable it by pulling fuse out. But it will also disable traction control and ABS. Maybe you can try instead disconnecting SWPS, then you still should have traction control+ABS, until you fix your problem.
Why is the console switch non-functional? Open your glove box, pull that little panel up and make sure the button is plugged in. You need to disconnect them whenever you take the center console out, and it's really easy to forget.
As for the odd behavior of the system itself, that doesn't sound right. Do you have any codes when you run through the diagnostic page? It shouldn't be triggering on simple things like road imperfections. Makes me think you have a wheel speed sensor that's not functioning correctly or something.