When I tow I generally have the trailer brakes on VERY light as I like to have control of the trailer no matter what it is, 20' TT or 40' Fifth Wheel. Its nice to have them there though if you need to manually slide them on so you can stop in a hurry.
We don't deal with surge brakes very often so my understanding is somewhat basic but my understanding is that there is no electricity that runs to the brakes, they are inertia activated at the toungue of the trailer/tow vehicle hitch point. As you slow down on the tow vehicle there is more pressure at the toungue which in turn activates, and here is where im a bit fuzzy, the brakes on the trailer. I'm not sure if this is a hydrolic system from the toungue or exactly how that works. The problem with this is that you have very little control. If you slow down your brakes will activate on the trailer no matter what, and sometimes you do not want that to happen. THis is why we almost always use electric brakes and anything I've ever sold/dealt with primarily has them.