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With the current icy conditions in the SI - if you feel that the car is about to loose traction when it is fitted wuth DSC should one attempt to steer in the direction of the possible (or actual ) skid as previously or just hold the steering wheel lightly and let the DSC sort it out ?

Depending on the severity of the slide, as with any slide, it is adviseable to steer into it, but gently on ice, particularly if there is understeer - ie; the front is sliding, as steering into it will allow the ABS and ESP to work while still steering the car.
Even if the car has ESP, it will still slide sideways on ice. The ESP will apply braking to the relevant wheel in an attempt to correct the situation, but if the wheels are sliding sideways (at 90 degrees to the car) braking cannot provide a great deal of help.
Whenever driving on ice and snow, the trick is "less is more". Less braking, less accelerating and less sharp steering.

PS; Do you really own all those classic MG's? You won't find any Traction Control systems there!