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Is the Racing Edition too extreme for daily use or am I going to be disapointed with the Towing Edition if I think the stock transmission is shifting too soft?
I haven't had a chance to hook up to my 5er but for daily driving the shift in my stage IV is nice and firm. It is not too harsh. I can tell when it shifts from 1st to 2nd, 2nd to 3rd etc. I have the towing vb. It is firmer than when I had only the vb and tc. The TC that they are building now is a little more efficient than it used to be. If you plan on doing some raceing you should consider the full stage 5 transmission.
You will not find an ATS (or any aftermarket valve body) that will have 'soft' shifts. They will all be Firm, and some may even be hard. My dads has the towing VB in it, very impressed with the VB. very firm shifts, but not hard.
I have the towing VB and am quite happy with it. It shifts firmly but not harshly. I like firm shifts. I wouldn't want it to shift any more firmly than it does now. I talked to ATS before I bought mine last fall and they said that the far majority of people go with the towing VB. They also said the only difference between the two was in one of the adjustments in the VB. In the case you want it to shift firmer or harder it can simply be adjusted to your desire.