I dont mean to come off as an A$$ hole, but.... I take it none of you have ever driven a manual trans vehicle before? Now before you go "wait this guys is an idiot, this isnt a manual!?!" let me explain.
If you have EVER driven a manual trans vehilce before, and you attempt to down shift, or use "engine drag" you should know that in order to keep the vehile from "jerking" you have to match engine RPM with trans RPM. If your engine is spinning slower that your trans, then hell yes you will get a "jerk"! What else do you expect to have happen when you throw two rotating parts together that are rotating at different speeds.
Now, even with the torque converter to dampen this difference, The SST works the same way, if you are doing 35 mph... and for whatever reason you decide to slam the shifter into 2nd you need to tap the gas to get the ENGINE rpm to match the TRANS RPM. If you do not, you can cause seriouse drivetrain problems, or as one of you stated "have the tail end come out from under you" wich is VERY dangerous if you do not know how to control it.
Now with this being said you should be able to understand why there is a delay in down shifting..... the computer simply wants to give your vehicle time to slow down a bit so that the trans will be at least a little bit more in sync with the engine. Try matching RPMS and give it some practice and you realize how quickly the LS' SST can really shift.
I'm sorry if I came off as a d1ck in this post but you have to use a little common sense here.