I've stated the above based on seeing the transfer case shifter(s). There are two only types going to be available.
One is a lever operated unit that is exactly like my 1999 SR5 Highlander. 2H, 4H, Neutral and 4Lo. Same exact pattern too. Thats it, no unlocked 4H.
The other is a dial operated unit which is 4HF, 4HL and 4LL. No ability to run in 4Lo Free (unlocked).
There is also a rear e-locker available as well.
Since the Limited will include standard full time 4WD, I am assuming the other models will be of the part time lever operated type. Perhaps the part time lever type will be for the 4cylinders only, I dont know for sure. Will there be an option to upgrade to full time dial operated 4WD on the SR5 and TE, I personally doubt it. You are paying $4K to get the limited badging you should actually get something that is worth that other than Leather. Now you will get a torsen center diff and well as smart key system, optitron gauges and a bunch of other goodies.
I dont like this my self but I can understand where Toyota is coming from. We shall see for sure on Thursday. Agreed it is a step backward, personally I wont buy a 4R with the part time 4WD system after having both the part time 4WD and the Full time 4WD with torsen center diff. It wont make me switch to another brand as I can just buy a Limited if I needed to, but it does suck that I wouldnt be able to get a TE the way I would want it to be. Also I do believe that for the refreshed mid year 5th gen's they will add the multi-mode feature to the lower models. I wont be in the market for another 4R till at least the mid year refreshed 5th gens anyhow (to replace the 99 when it is around 15 yrs old), so no worries.