Robin.. I fully expect a guy with a Camaro to do a burnout. Lots of 'em.
If they got a TH tranny, the car will still move. If they got a 700R4 they better have AAA or a cousin in the tow truck biz.
I've never owned a vehicle newer than a '98 or so.. but i've never seen any warning saying not to drive in OD while city driving or towing. Never.
I suppose if you got an owners manual with the vehicle, and actually bothered to read it, you'd see something about that.. but I have to wonder how many people actually read those owners manuals.. aside from checking to see how to set the radio station pre-sets or clock.
Interesting to note the Fords with OD don't have the same kind of failure rate.. is that because Ford owners are 'smarter' or is it just that their OD trannys aren't pieces of crap.