This must be a 3G MMI feature as I've not come across this in any D3 with 2G MMI.
The live traffic updates (using the 'INFO' button) are pretty crap from my experience and not worth bothering with, in the 2G cars at least. They don't give enough detail and never seem to be local let alone accurate.
As you mention, Waze (made by Google) is a decent app and simple to use but I find Google Maps more than adequate and always accurate. Of course, getting a decent GPS signal through the infrared-reflective glass is another challenge altogether. 
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Currently '8-less
Previously:
- Aqua Blue Pearl D3 S8 - Kamut Beige leather, ACC, B&O, factory RSE, solar sunroof, electric blinds, ski bag, Homelink, comfort headrests.
- Aqua Blue D2 S8 - Grey leather/Alcantara
- D3 A8 3.0 CVT
- D3 3.7 V8
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