I think the distance it comes to a complete stop at is actually way further than normal, honestly, and thus fine in my book.
However it does slow down abruptly when coming to that stop, much more so than I would personally. I think part of this can be chalked up to it following the speed of the car in front, since most people seem to brake late anyway, combined with an algorithm that decreases the needed following distance based on the lower speed making the car think it can get closer and thus not yet need to slow down until that gap is closed, then play catch up once the car ahead continues to slow needing the use of the friction brakes.
I almost never use the friction brakes when driving in town aside from holding the car stopped. So, I'm probably going to stop using TACC for coming to stops like that until they can feather it out a bit. It's a cool toy, but not really enjoyable in this instance just yet. On the highway it's great, though.