My 97 will shift between 1-2 if I put the shifter into 2, it just wont go past 2. On trails in CO there are plenty of times where getting into 3rd gear are still good in 4lo, I still don't rev high so no issues there. Also there was a thread on here recently where a guy was talking about doing some extensive wheeling in 4hi and it caused his transmission to overheat a little bit. I feel when you (if you) are going slow enough to use even overdrive in 4lo it is still easier on the tranny than making it crawl up steep inclines in 4hi in 1st gear.
All trails etc. may vary though. The only thing I use 4hi for is when it snows and I need the extra traction on the regular roads/highways.
Same here, mine definitely does not start out in 2nd just because that's where the shifter is at. And yes the shifts are pretty damn abrupt from 1-2 in low range.