What we have is a unit bearing hub where the axle shaft bolts directly in to the hub. That means that the axle shafts are spinning when the wheels are moving. So to keep drag down to a minium, they put in a center axle disconnect that uncouples one side so that the full differential and driveshaft won't spin in 2wd.
The newer trucks have IWE (integrated wheel ends) that disconnect the hubs from the axleshafts.
None of these shift on the fly, push button 4wd systems are very good for real off road use. None of them allow for a limited slip diff in the front. If you could fit real locking hubs on the truck, there would be no issues using a limited slip (or even a locker) in the front during normal 2wd driving.
I've been looking for a kit to convert my 4wd system to a fully (or at least mostly) mechanical shift, but I haven't had much luck. There is a company that makes a kit that replaces the vacuum actuator for the center axle disconnect and converts it to a manual, cable style, but I haven't found a source for standard style wheel bearings and manual locking hubs. Everything I could find are for solid axle trucks like the F250s, 350s and Excursions.