The switch you are referring to on the older vehicles is to prevent engagement of the solenoid in when shifted into reverse.
It is not the kick down switch which serves a completely different purpose. Ford, Studebaker, Plymouth, and others used this system on early vehicles.
GM, Ford, and other later units use a lock out pin as Jerry mentioned that is actuated when shifted into reverse.
If you hook up the wiring using the relay, KD switch, and the governor as the factory intended for it to be, anyone can drive it and it will perform well. I don't know what "using freewheel as a passing gear" means. It literally makes no sense.
The only control on or near the dash is the pull cable so you are not going to find any reference to a switch on the dash.
You are free to use any configuration that makes you happy but some actual engineers devised the system years ago and it continues to work well if installed as intended.
Fred


1956 3100 Pickup/Red/350/3sp OD/PS/Disc Brakes
1957 Bel Air Sport Coupe/Red/355/TH350/PS/Disc Brakes
2017 Silverado LT Single Cab SB/Black/5.3/6 Speed Trans
1947 Willys CJ2A w/F-Head engine