Gear detection is based on comparing VMESS to RPM, I know that aftermarket systems use wheel speed sensors, will this system of traction control even work?
There is an easy way to say for sure: test it.
But in my opinion even if it works - it will be very sloppy with ~0.075sec (13hz) reaction time. Besides, I have no idea how gear detection works in M4.4, but if it's the same as ME7 - you will run into a lot of trouble trying to calibrate it absolutely accurately. I'm using it for custom gear-based rev matching routine, and it's very "meh" to rely on. Drivetrain play, tire pressures, etc - make it bounce all over the place.
Also, I assume the car is 2wd, and is getting vfzg from non-driven wheels? That sounds unlikely, but I'd like to hear more info.
If M4.4 is torque-based, it might make more sense to use torque regulating mechanism for traction control purposes.