wouldnt the ring gear sling oil up in there like a water wheel? with all the sloshing around and turbulance id guess everything sees enough oil.
The ring gear does slosh the oil around but the snout of the diff is encapsulated so only the pinion gear and the big bearing get oil though.
The easiest way to describe it would be using a 10 speed bicycle. If you look at the rear wheel where the sprocket is. You have the chain sprocket, then you have a wheel bearing, then the wheel hub,and finally the other wheel bearing. Imagine trying to oil the wheel bearings buy sloshing oil on the sprocket. The bearing closest to the sprocket will get some oil but the bearing on the other side of the hub will stay bone dry.
Here is a picture of a rear diff and its provisions to lube the small pinion bearing.
Here is a picture of the inside and you can see that the two bearing surfaces are seperated from one another. But if you look closely, you can see an opening where the ring gear can slosh oil to the small bearing. (the diff is upside down in this picture)
Here is a picture of the front diff. Notice how there is no cavity above the pinion. Notice that the oil level screw is even with the bottom row of the pinion bearings.
For what it is worth, I never called the diff drop garbage. I just said the i wouldn't buy one or recommend it.
From what I read, race car drivers keep a 1 to 4 degree difference on the pinion angle to accommodate axle torque. The rear axles will torque upwards during acceleration thus creating a parallel pinion-output shaft angles.
As far as pinion angles are concerned. I am sure the Toyota Engineers have designed the pinion angles to be in perfect unison for the drive train, and I am pretty sure that altering that angle is not beneficial to the 4runner.