My '81 G-10 van with a TH350C transmission has that same vacuum switch...never had issues with it,though when I first got the van I discovered the converter wasn't locking up ,due to the stoplight switch being out of adjustment...one night I noticed the brake lights were "stuck on"..
I had noticed the transmission seemed to be running "hot" on a long trip (150 miles) I made,and when I listened for the RPMs to drop when I stepped on the brakes and it didn't,I realized the stoplight switch is tied into the lockup circut--once I adjusted the pedal switch the converted locked up normally again...probably would have cooked it eventually if I had not discovered that !..
I have seen similar setups on other cars used to shut off the A/C compressor on wide open throttle too..gives you a few HP back when its most needed..