Older Nissans (90's) had electronic locking diffs on some 4X4 trucks and what ever that moon rover looking SUV they had is called. If you could find one of theses at a salvage yard im sure it would be cheaper then front and rear LSD. I would take a selectable rear locker any day over LSD,
It would take adapting the whole rear axle.
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Yes, a selectable locker is great for wheeling where you are lifting tires off the ground, rock crawling etc... They do have some downfalls though. Slippery roads and lockers on a daily driver can get you in trouble really quickly in my neck of the woods where a limited slip will actually improve traction on corners. Wet or dry, loose or solild a LSD is what you want when all 4 corners are on the turf on a DD vehicle.
As far as a selectable locker goes I would just have to drop the coin on a ARB or opt for the toyota E-locker with the cable actuator for simplicity.