Very impressively written! Unfortunately, it's completely wrong.
The ZF transmission is the 4 speed unit. The AW transmissions (both the 70 and 71) are conventional 3 speed planetary geartrain units. They are just like a Ford C-4, or a GM Turbo 350 in their 3 speed planetary geartrain design.
A separate overdrive is used by the AW71, and inhibited in operation to only third gear. This overdrive lives within the transmission case, but is distinct and separate from the rest of the transmission.
The electrical circuit to the overdrive solenoid on the transmission is not normally energized, it is normally off. It is only energized when the solenoid closes the contact, providing electrical power. This event only happens when the transmission is in third gear, and the shifter electrical switch is closed, causing the relay to close. Then, and only then, is electrical power provided to the overdrive solenoid, engaging it.
If the overdrive unit were to somehow "hang up" in the engaged mode, the transmission would no longer shift to four distinct gear ratios, but would engage only the conventional three, at the higher overdrive enhanced ratio. This would be most noticable in 1st gear, as it would be a much taller ratio, resulting in substantially slower acceleration.
I hope this information helps you to understand how these transmissions and overdrive units actually operate. Further information on this subject can be obtained from a factory service manual, wiring diagrams, and examination of the transmissions themselves.