The push button 4WD is really convenient. I had one on my 97 limited and my 01 SR5 has one as well.
I wouldn't say it's better than the J shifter, it's just more convenient.
Also the biggest thing between 96-99 and 00-02 is the transfer case having the ability to be all-wheel-drive. The 96 through 99 models can only be 2wd or 4wd. However my 01 has the multimode transfer case letting me have an AWD or 4WD. Which is great for the snow and ice.
But if you can find an e-locker truck buy it. If you plan to off-road it's much more useful. I still wish I had my 97 it had one.
My goal is to install my E- locker, put a lunchbox locker up front and then find a locking transfer, I've seen 2 other 3rd gens with a locking transfer. Why you ask, because I cannot find nor afford a decent Landcruiser.