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Dan--Insofar as the ECM is concerned, it CANNOT adapt to new parameters of induction because it doesn't "understand" the new air flow, and MUST be programmed into your PCM through a Tune. As far as the tire sizes, that also must be programmed into the system in order for the accuracy of your speedometer.
The Engine Control Module (E38 ECM) far as I know. I do not think the manual cars have a Transmission Controller Module (T43 TCM) like the A6 is equipped with. I think it cuts timing based on CAN messages it gets from the ABS module.
Well I've got some posts on this relative to the ability to retrofit but the Launch Control is actually controlled by the EBCM which regulates engine output through the ECM. The issue I see is when its commanding X torque it may not be able to scale the engine back far enough/fast enough to achieve this and will likely set a DTC. I guess the only way to see is to try it and I can help you work through any issues that pop up.
I can tell you first hand that a properly calibrated ECM on a 2009 LS3 with twin turbos can indeed execute good control of torque modulation on launch. The jury is still out as to whether the "launch control" truly exists on the 2009MY cars (like mine), but they still have traction control that is tied to the ECM via CAN requests. The 2009MY cars got the newer Bosch EBCM, which is still head and shoulders ahead of the older Delphi design. If the ECM torque model and airflow estimates are right (that's a BIG "if" for most aftermarket tuners), then the ECM has really good odds of only pulling the desired torque amount during traction events when the vehicle is in "normal" mode.
I can assure you that my traction control is very active during WOT 1st, 2nd, and 3rd gear events on my car, but it's fairly seamless to the driver's butt. I just get relatively smooth acceleration right near the traction limit of the tires.