The short answer is YES, the smartcontroller ( SC ) will help do what you want.
It has several main features. One is second gear lockup capability ( requires a VB that has been appropriately modified ), and the lockup control feature for engine/exhaust braking.
-- Second gear lockup. Has a switch mounted near transmission that senses when the lever is moved to the manual second gear position. There is also an adjustment for this. Mine is set to 20MPH. When the lever is moved to manual second, and the speed is above 20MPH lockup is forced. When below 20MPH lockup is removed. When the lever is not in manual second, the SC has no effect on 2nd.
-- I believe that manual second, is the only place where lockup is forced. Otherwise lockup occurs when the PCM tells the transmission to locup. Once locup does occur, the SC HOLDS lockup so you have the engine/exhaust braking feature you desire.
-- There is an adjustable speed for what speed the SC does finally release lockup. It just cant hold it till you come to a complete stop. Like on a manual transmission, you have to push in the clutch sometime. Currently mine is a 30MPH.
-- I am a little fuzzy about this part but I will give it my best. Lets say you are traveling 70mph in OD. You let off the throttle and you have a mystery switch that is holding lockup. My impression is that the transmission will hold lockup and stay in OD until lockup is finally released. What does this mean. Well at 70 the rpms are high enough that you get some engine braking effect. But by the time you slow to 40 the rpms are low enough that you have little engine braking effect. What would be nice is if you lockup out the OD button, get the transmission to shift into 3rd, lockup again. This would raise the rpms up, and continue to allow for engine braking that is usefull.
-- The SC does this for you. You have an adjustable setting for what speed the controller does the 4->3 downshift for you.
-- As a side note this also controls what speed the transmission is allowed to shift into OD. With the SC turned off, and at light throttle like driving in town, my PCM will shift from 3rd to 4th at 30-35MPH. Lockup does not occur to 48mph. Dont be confused the actual shift into OD can occur sooner than when lockup occurs. At least on my 97 anyways. In onder to keep the transmission in third driving in town, I always had to use the OD button. With the SC enabled the transmission stays in 3rd until the set speed is reached. Then shifts into 4th. Then into lockup according to the PCM signals. I am not required to use the OD lockout button to stay in 3rd driving in town.
-- When I do manually use the OD lockout button the transmission stays in 3rd. The normal OD lockout works like it always did. Justnow w/o the use of the OD button, the SC controls the 3-4 and 4-3 shifts according to the user adjustable speed, when it and the od button are enabled.