If you've ever ridden a bike that has a direct torque multiplication system, you'd know how bad that is. When you're on a hill, the motor surges when you push the pedal down and stalls between the pedal strokes.
If you were to ride a bike which only had a crude, direct torque multiplication system with no software smoothing, then yes, you probably would experience what you've described. However while there might indeed be very cheap and nasty models out there that work this way, fortunately I've never had the misfortune of riding these, and thus I've never experienced what you've described. I have however ridden modern bikes based on things like the TMM4 sensors and I've never experienced the 'stalls between pedal strokes' that you mention. Thinking aloud, perhaps if I cycled with an incredibly inappropriate cadence, I might be able to reproduce the effect, but then again ... maybe not.
All the decent systems that have torque sensors use a combination of torque and cadence in their power algorithms, and there's definitely been a trend in toning down the torque multiplication component in recent years, which is why Bosch had to introduce the MTB mode. The torque sensor is used more to detect that the pedal has been pressed than as a way to regulate the power.
I believe you have that backwards. The standard Bosch power modes are made out to be a fairly direct (linear?) multiplier system, but the eMTB mode makes MORE reliance on the torque sensor in that it applies a non linear power response, but the response is varied by and is derived from how hard you press on the pedals. Surely it is therefore toning UP the dependence on torque?
The problem on relying on torque alone, is that the bike can surge forward as soon as you apply weight (even when stationary) to the pedals. To overcome this, Bosch watch for cadence activation as well before applying assist, however this means that your last sentence is also backwards, it should read "the torque sensor is the mechanism that mostly regulates the power, the cadence sensor is used more to detect that the bike has started to move before applying (max) power"