On Friday I bought a 2020 to replace the 2019, and yesterday afternoon we took a 280 mile roadtrip to the mountains for some Sierra leaf peeping, which included some of the route I tried the 2019's ACC on a couple weeks ago.
My 2020 definitely behaves differently -- it does not actively decelerate/brake to the set speed, either when reducing the setpoint with the "-" button or when the hill is steep enough that the car accelerates above the setpoint. The 2019 actively decelerated in both cases. The first case is testable/noticeable on flat ground -- going 70, rapidly press "-" to say 55 and the 2019 quickly slowed; the 2020 stays at 70 and gradually coasts down.
And yes, using the paddle for regen cancels ACC, and hitting "set" while higher paddle regen is already set cancels that regen -- in fact, it sometimes felt like hitting "set" on a hill released even the normal small amount of regen braking that occurs, but that was harder to reproduce.
It doesn't bother me too much; I don't use cruise control that often especially on mountain roads as it makes me feel less in control (I prefer to anticipate and slow a bit into curves and accelerate a bit when I can see it's straight for a while). But I can certainly see why it would be annoying and less useful for the many driving conditions and drivers. Mine was built in 6/2020 in case we find out they changed it mid-year, but it really does seem like an intentional change due to a safety or some other concern.