Super helpful diagram, I am trying to understand my 07 Ltd 4wd system -- includes the RSCA button, which for some reason I now have to engage to go into 4H. More to come.
In my opinion all wheel drive can not be used as a blanket term to describe how it works. Different manufacturers and computer controls can differ between makes and models.
As long as you do not lock the center diff, you can drive around in 4WD. You should only lock the center diff when you're off road and in low traction situations. This video does a great job of explaining the differences between part time 4WD, full time 4WD, All wheel drive and when to use what.
WARNING: You may want a 79 series Land Cruiser after watching this video