Well - the plot thickens...
On my ride today, I tried to compare the Garmin wattage to the wattage displaying on the TQ head unit, and I think I see a bit of a pattern.
As I started to add power slowly and then sustain that power, it looked like the numbers were the same, it was only when I eased off a bit that the TQ's number didn't drop... not until I backed off enough to supply a much lower (or zero) power to the pedals.
I think the TQ doesn't really "ease off" as the rider does, it appears to keep the "human" power number at it's max (ish) value until the rider eases up to put no input into the motor; then it resets and starts to match input again.
This may be a "usability" decision by TQ - I'm not sure I'm a fan of it or not... I think it may have been a decision to "support" the rider "in a manner to which they've become accustomed to" in an effort to keep the bike rolling along on a rise, hill, climb, effort, whatever... once the rider eases off significantly, I think the motor must ease up so the rider can coast to a stop, etc.
I can see how this might buoy a rider into enjoying a ride more; but being a cyclist who rides in groups, in pace lines, etc - I'm pretty used to easing up my power slightly to ensure my pace is consistent with other riders in the group.
I did most of this experimenting on the way back from my coffee run, but looks like the TREK app auto ended the ride while I was having said coffee... so I don't have that data to review. I'll see what I can find in the first half of the ride.