Thanks for the info. I re-checked my fluid level (idling, in park, after 10min freeway drive) and added back most of the quart I thought was overfill. Regardless, the delayed drive engagement is still gone. No other issues either under normal driving or during an hour of stop-and-go rush hour commuting.
I am much more attuned to all the shifts, lockup, disengagements than I was before but nothing seems out of the ordinary. So I don't know if the dealer was recommending replacement based on the delayed engagement alone or if there was some other "slipping" that they noticed.
Paul