ESP
ESP uses the brakes, but it certainly does not wear them down. It works by applying short pulses to individual wheels. You probably do more wear by coming to a stop at a stoplight than ESP does while you're driving hard.
So, if you're asking whether you should leave it on or off for your driving style, leave it on and see how often the light flashes. If it never/rarely does, then you should always leave the system on so that it can help you in an emergency. If you're going for a track day, however, you may be better off turning it off.
EDL is not a function of ESP but rather a function of the ABS.
When you DESELECT the ESP switch in the dash (ESP light on), you have basically taken the ASR, the yaw sensor and the steering angle sensor out of the loop. EDL is still functional. It is also said that ESP is in a semi dormant mode and will under extreme conditions jump back in to try to stabilize a car going out of control. Nobody knows at what point this happens. It is also known that this trigger point on the B6 cars is set at a higher threshold than on the previous B5 cars, so less interference from the system.
Finally the only way to cancel all this electronic wizardry is to pull an ABS fuse, because without ABS, there is no ESP. But keep in mind you will also loose your ABS braking and EBD, making the front to back brake bias poor, which will make for premature rear brake lock up.
If you track your car or are an aggressive driver, you should turn OFF your ESP because you will definitely loose performance. Personally that's what I do every time i get into my car. ESP intervention is very noticeable when driving in the wet or on snow/ice covered roads.
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