No, the atlas padding is just to avoid artifacts from color bleeding. You need additional space around the sprite to allow for placing of antialiasing pixels. See the following sample: both sprites are slightly rotated by the same amount. The left has no transparent border, while the right is the exact same sprite, but has an additional transparent border of 2 px on each side. The right border appears very jagged, since no antialiasing can be produced oustide of the sprite area, while the right is extremely smooth…the additional empty space can be used by the GPU to produce the necessary antialiasing pixels:
In TexturePacker, this option is called "Inner Padding", since it produces an additional padding to the inner portion of the sprite (and thus effectively also extends its net size). This basically leaves a corresponding space around the sprite within the atlas and fixes the metadata accordingly, so the sprite will be used including the additional transparent border. That way, you don't need to fix the artwork itself (which can be extremely tedious otherwise).
This would be an extremely valuable option for the tk2d sprite collections!
Regards, habitoti