Got it fixed.
After some reading on how these sensors work, I devised a test using an oscilloscope (not many people have one of these sitting around I guess). I found one bad sensor (i.e. no output waveform on the scope while rotating the wheel hub). I figured this was the problem, went and bought a new aftermarket sensor ($152) (which came with the hub and bearing for cheaper than buying the sensor alone from the local GM dealership ($300). Plugged in the sensor and all the dash lights (check traction control, check stabili-trak, ABS...) went out. I ran the truck down a dirt road and jammed on the breaks and the ABS works fine. A couple of pictures attached. These sensors are "hall effect" as far as I can tell, with an integrated circuit that controls the gain of the sensor and outputs pulses, this requires +12V and gnd from the screw that holds the sensor in place, the return wire is signal. I measured from signal to +12V but the output from signal to gnd was probably higher.
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RN