Hi, Jim. I agree, no heat here. First off, rereading I see I did indeed insult you by saying you didn't look out the window (although that was not exactly my intent). I was trying to make a point, but I made it at your expense. I apologize for that. In your first msg you said you didn't see it, which to me implies you were looking. Wes is right of course, the other a/c could have been almost anywhere. I've missed seeing even called traffic many times.
Since you asked around (with varying success) you now know what the deal is. For other readers, I'll quote the last bit of the section on traffic in the GDL39 user's manual: "The FAA ground station will only broadcast TIS-B traffic that is within ±15 NM and ±3500 feet of an aircraft with ADS-B Out. To get the full benefits of ADS-B traffic it is recommended that the aircraft be equipped with an ADS-B transmitter..." [...such as these fine products by Garmin!].
That's the "what." I researched a whole lot last night and I could not find the "why." TIS-B (which is the acronym that sends the traffic data) isn't something you just turn on/off with a switch like selective availability in early GPS days. It was designed from the start as a client/server relationship where you only get data if you ask for it. And you ask for it via ADS-B Out. I'm pretty sure the reason is bandwidth limitations. I can visualize capacity problems with broadcasting every radar target within (say) 50 miles of an ADS-B tower, but I don't have any numbers to back that up. As an engineer I would like to believe the design was based on rational engineering factors, not on the FAA as Evil Incarnate. But I could not find on the internet any discussion of the design rationale. I'm still looking.