Yes, the idea is so the sled won't take off like a rocket if the throttle (slides) are stuck open, when you start it. When that little 'nub' is pressed in (when the throttle is closed) there is a sensor on the carbs that reads where the carb slides are - they must be near idle position.
What is a common problem, is the switch in that little nub can fail and the symptoms are the sled will idle normally, but when you press the throttle, the engine cuts out or sputters badly.
Many folks disable the TSS as a trouble shooting step. I have it disabled on both of my Cats. Just be sure your carb slides are functioning properly before starting it, or use a tether.

 

Would there be a TSS on a EFI sled? my sled will randomly shut off if you push DOWN on the throttle lever, or if it snaps back after you have been on the throttle. like someone is hitting the kill switch.

its a 98 EXT

 

Do you see where the flapper is attached with the "bolt"? Watch that when you apply even pressure on the flapper like your throttling up. The juncture where the flapper is attached will actually move like it's loose. It's supposed to do that, if it doesn't, or if it isn't even on the top and bottom (like you're vid shows you doing by pushing downward on the flapper) it sets off the safety switches.

 

I went out this morning and disassembled the throttle lever and saw those two switches inside. Didn’t realize they were in there. Could have saved 50 something bucks, I thought it was the kill switch going on me.

I believe the seals are what the actually problem is. Look like there are tabs supposed to slide into the housing, and the tabs have broken off of the seals.
Does that sound correct?