I don't believe this to be true. You can partially disable the ESP system while driving by pressing the button. I believe you can completely shut down the system with the button, but you must be in Park to do so. I'll try to dig up a copy of the manual that explains this.
From page 141 of the 2007 owners manual:
This pertains to working in 4-Hi. Page 142 describes the system in 4-Lo.Full Off (4WD Models Only) This mode is intended for off-highway or off-road use when ESP stability features could inhibit vehicle maneuverability due to trail conditions. This mode is entered by depressing and holding the “ESP Control Switch” for 5 seconds when the vehicle is stopped and the engine is running. After 5 seconds, the “ESP/TCS Indicator Light” will illuminate, and the _ESP OFF_ message will appear in the Electronic Vehicle Information Center (EVIC). Refer to “Electronic Vehicle Information Center (EVIC)” in Section 4 of this manual.
In this mode, ESP and TCS, except for the “limited slip” feature described in the TCS section, are turned off until the vehicle reaches a speed of 40 mph (64 km/h). At 40 mph (64 km/h) the system returns to “Partial Off” mode, described above. When the vehicle speed drops below 35 mph (56 km/h) the ESP system shuts off. ESP is off at low vehicle speeds so that it will not interfere with off-road driving but ESP function returns to provide the stability feature at speeds above 40 mph (64 km/h). The “ESP/ TCS Indicator Light” will always be illuminated when ESP is off. To turn ESP on again, momentarily depress the “ESP Control Switch”. This will restore the normal “ESP On” mode of operation.
NOTE: The “ESP OFF” message will display and the audible chime will sound when the gear selector is placed into the “P” (Park) position from any position other than “P” (Park), and then moved out of the “P” (Park) position. This will occur even if the message was previously cleared.
HTH