If the vehicle speed sensor were faulty, it would not shift out of 1st. Does the engine run well? Air filter restricted? Fuel filter restricted? A poorly performing engine will have late shifts and late TCC. The TCC coming in is directly related to engine load and is controlled by the PCM. He is right about no TCC overheating the trans. If you must drive it, don't use overdrive. Poor engine performance will heat the trans up too. Having the latest programming downloaded from GM might help shift quality, but I doubt that is your concern. When the guy put the new trans in he should have cleared the TAPS. Not clearing the TAPS can make a new trans shift really erratic.
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